Understanding Inverse ETFs
Inverse ETFs (Short/Inverse ETFs) are exchange-traded funds designed to profit from declining markets. Using financial derivatives, they deliver returns opposite to their underlying index or stock performance. Some products incorporate 2x or 3x leverage to amplify both gains and losses.
Key Features:
- No short-selling required: Easily capitalize on market downturns without borrowing securities
- Strategic flexibility: Hedge portfolios or execute short-term trades
- Leveraged options: Magnified exposure with 2x/3x products
Newly Listed Tokens Breakdown
1. $SOXS.M | Direxion Daily Semiconductor 3x Inverse ETF
- 3x leverage against the PHLX Semiconductor Sector Index
- Ideal for: Capitalizing on semiconductor industry declines
- Underlying assets: Major chip manufacturers like NVIDIA, AMD, Intel
2. $MSTZ.M | T-Rex 2X Inverse MSTR Daily ETF
- 2x inverse exposure to MicroStrategy (MSTR)
- Strategic use: Bitcoin-related stock corrections
- Note: MSTR's high Bitcoin correlation makes this an indirect crypto hedge
3. $TSLQ.M | Daily TSLA 2x Inverse ETF
- 2x leverage against Tesla stock
- Best for: High-volatility short-term strategies
- Consider: Tesla's market-moving news cycles
4. $SQQQ.M | ProShares UltraPro Short QQQ
- 3x inverse to Nasdaq-100 Index
- Tech focus: Targets FAANG+ stocks during pullbacks
- Historical context: Performs best during tech sector corrections
Trading Advantages
👉 Trade with zero settlement delays using USDT, USDC, or USD1
- Instant chain settlement (T+0)
- 24/7 order placement
- Portfolio diversification through alternative strategies
Strategic Applications
Risk Management
- Hedge existing positions against sector-specific downturns
- Balance long portfolios during bearish market phases
Opportunistic Trading
- Capture downside momentum in overvalued sectors
- Short-term volatility plays around earnings/events
FAQ Section
Q: Are inverse ETFs suitable for long-term holding?
A: No. Due to daily rebalancing and compounding effects, they're designed for short-term use (days/weeks).
Q: How does leverage affect risk?
A: While 2x/3x products amplify gains, losses also compound faster. Strict risk management is essential.
Q: Can I use these for crypto exposure?
A: $MSTZ.M offers indirect Bitcoin exposure through MicroStrategy, but isn't a direct crypto proxy.
Q: What's the minimum investment?
A: Tokenization allows fractional ownership - you can start with any amount.
👉 Start trading leveraged ETFs today and explore advanced strategies with our secure platform.
Note: Trading involves risks. Consider your financial situation before participating.