3X Short Exchange Token Index Token to USD Price Chart

Has the 3X Short Exchange Token Index Token (EXCHBEAR) price changed today?

The price of 3X Short Exchange Token Index Token (EXCHBEAR) has increased today, with a current price of $$ 0.00012712. Keep in mind that due to its nature as a leveraged token, EXCHBEAR's price can experience significant fluctuations within very short periods.

What Is 3X Short Exchange Token Index Token (EXCHBEAR)?

3X Short Exchange Token Index Token, known as EXCHBEAR, is an ERC20 token tailored for traders who aim to gain leveraged exposure to the performance of the Exchange Token Index. This unique financial instrument provides an investment opportunity that corresponds to three times the inverse of the daily return of the Exchange Token Index — this means that if the index decreases by 1% in a day, EXCHBEAR aims to increase by 3%, and vice versa.

How Does 3X Short Exchange Token Index Token (EXCHBEAR) Work?

EXCHBEAR works through a mechanism known as a leveraged token. Unlike traditional trading, where a trader might short sell or use borrowed money to amplify their trades, EXCHBEAR tries to replicate similar effects within a token. When the Exchange Token Index—a basket of cryptocurrencies from various exchanges—moves in the opposite direction of the EXCHBEAR’s target, the token's value moves threefold in the corresponding direction before fees and other expenses. It's important for traders to understand that leveraged tokens like EXCHBEAR can exhibit severe price swings and the losses may be magnified due to the leverage.

Who Created the 3X Short Exchange Token Index Token?

While there isn't a specific 'founder' in the traditional sense for EXCHBEAR, it is a financial product created and maintained by FTX Trading Ltd. FTX is a cryptocurrency derivatives exchange that offers a variety of advanced trading options, including leveraged tokens like EXCHBEAR.

What Index Does EXCHBEAR Track?

EXCHBEAR tracks the performance of the Exchange Token Index. This index is composed of a basket of tokens that are associated with cryptocurrency exchanges. The selection and weight of the tokens in the index can vary based on the specific criteria and methodology set by the index provider.

What Are the Risks of Trading EXCHBEAR?

Trading leveraged products like EXCHBEAR is fraught with risk and is best suited for experienced traders. The token's value can decrease rapidly, potentially leading to significant losses, especially in volatile market conditions. Furthermore, because the token aims to achieve results that are three times the inverse of the index's daily returns, holding it for more than a day can lead to return profiles that differ from -3x due to compounding effects.

How Is the 3X Short Exchange Token Index Token Valued?

The value of EXCHBEAR is derived from the performance of the Exchange Token Index. As it aims to offer -3x the daily return of the index, its valuation is based on the movements in the prices of the tokens within that index. The actual mechanics involve complex financial instruments and methodologies, like swaps and futures contracts, to achieve the desired leverage effect.

Where Can You Buy 3X Short Exchange Token Index Token (EXCHBEAR)?

EXCHBEAR can be purchased on various cryptocurrency exchanges, BitMax. It's advisable for potential traders to perform due diligence and understand the specific processes and fees associated with trading on these platforms.

How Much EXCHBEAR Is There?

The circulating supply of EXCHBEAR tokens is not fixed but varies according to the demand for the token and other market factors. Since it is a leveraged product, its supply can expand or contract in response to significant price movements and rebalances to maintain the targeted leverage ratio.

What Should You Consider Before Buying EXCHBEAR?

Before buying EXCHBEAR, you should consider your experience with leveraged financial instruments. It is essential to be aware of the high risk and potential for loss due to its leveraged nature. Also, consider the liquidity of the token, the volume of trades, and understand that holding the token over multiple days can result in returns that diverge from the expected -3x daily target due to compounding. Always perform your due diligence and consider speaking to a financial advisor.

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