1X Short Compound price is $114.31
1X Short Compound (COMPHEDGE) is currently trading at $ 114.31. Over the last 24 hours, the price has increased by +0.00%%. Please note that cryptocurrency prices are highly volatile and can change rapidly.
1X Short Compound (COMPHEDGE) is a type of cryptocurrency financial instrument known as a leveraged token. This particular token is designed to provide an inverse exposure to the daily return of the Compound token, meaning when the price of Compound decreases, 1X Short Compound is created to increase in value, essentially allowing traders to "short" the Compound token. Leveraged tokens like COMPHEDGE are typically used by experienced traders to hedge positions or to bet against the performance of a cryptocurrency without the complexity of managing a traditional short position.
1X Short Compound operates by leveraging exposure to the Compound token in the opposite direction of its price movement. When Compound’s value goes down, the value of COMPHEDGE should go up by roughly the same percentage, but on a daily basis. It's important to mention that leveraged tokens rebalance daily, which can lead to compounding effects that deviate from the targeted leverage if held for longer than one day. Traders use these tokens for short-term positions rather than long-term holdings because of their rebalancing characteristics and the potential for decay in value over time due to volatility.
Leveraged tokens like 1X Short Compound represent a high degree of risk due to their complexity and the leverage involved. They are generally not recommended for inexperienced traders. It's also crucial for investors to understand that holding leveraged tokens over longer periods can result in significant divergence from the expected inverse return of the underlying asset, especially in volatile markets. Additionally, factors such as liquidity and slippage can have a significant impact on the entry and exit positions for these tokens.
The total supply of 1X Short Compound (COMPHEDGE) is not provided as leveraged tokens often have dynamic supplies. Their supply can increase or decrease based on market conditions and the number of tokens minted or redeemed as a result of traders taking long or short positions.
The market cap of 1X Short Compound (COMPHEDGE) is calculated by multiplying its current price by the circulating supply. As the circulating supply can vary greatly with trader activity, the market cap can be quite volatile. This token's market cap ranking is currently #1, with a market cap of $ .
1X Short Compound (COMPHEDGE) can typically be traded or acquired on various cryptocurrency exchanges. However, specific details about the exchanges where COMPHEDGE is listed are not provided. Interested traders should look for platforms that support leveraged tokens and offer the specific product they are interested in.
Given the nature of leveraged tokens and their inverse correlation with the underlying asset, the volatility of 1X Short Compound can be quite significant. The price can move substantially in either direction, amplifying both gains and losses. This type of instrument is mainly subject to the volatility of the Compound token, along with the general crypto market conditions.
Before trading 1X Short Compound (COMPHEDGE), traders should conduct thorough research and consider their risk tolerance, trading strategy, and understanding of leveraged financial instruments. Due to their complexity and inherent risks, leveraged tokens are best suited for those with a solid grasp of both the underlying asset and the mechanics of leveraged trading. Always remember that trading in volatile instruments like COMPHEDGE carries a risk of losing the entire investment, and it's crucial to use proper risk management techniques.
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