{"id":21889,"date":"2023-12-29T10:01:55","date_gmt":"2023-12-29T13:01:55","guid":{"rendered":"https:\/\/coinyze.com\/?p=21889"},"modified":"2023-12-29T10:58:40","modified_gmt":"2023-12-29T13:58:40","slug":"what-are-leveraged-tokens-on-binance-what-is-the-basis-and-how-to-trade","status":"publish","type":"post","link":"https:\/\/coinyze.com\/en\/o-que-sao-tokens-alavancados-na-binance-qual-a-base-e-como-negociar\/","title":{"rendered":"What are Leveraged Tokens on Binance: What is the basis and how to trade them?"},"content":{"rendered":"
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Leveraged Tokens Binance<\/a> It is a new concept that not everyone fully understands, and now the editors of cryptomais.com will try to explain it in detail. You should understand the subject as best as possible before you start using this tool for business, because although it can generate high profits, the risks are also very important. The tokens used are also named LT (Limited Tokens)<\/strong> they are designed to enhance the functionality of the original cryptocurrency with \u201cpermanent electricity\u201d.<\/p>\n

Product Page: https:\/\/www.binance.com\/leveraged-tokens\/tokens\/allTokens<\/a><\/p><\/blockquote>\n

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Where to sell LT: exchange Bybit<\/a>.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

Leveraged Tokens on Binance<\/figcaption><\/figure>\n

What are leveraged tokens?<\/span><\/h2>\n

Available tokens<\/em> which is available for purchase\/sale on the Binance local market and provides the opportunity to sell underlying assets, for example BTC or BNB, with \u201cbuilt-in\u201d leverage. In essence, these tokens are a kind of basket with infinite contractual terms.<\/p>\n

If we compare margin trading with LT<\/em>, then the latter are more convenient \u2013 \u200b\u200bthey allow you to make full use of the conditions without the need to provide margin and its support, without liquidation risks. However, such equipment has its risks, we will talk about them later.<\/p>\n

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The tokens used on Binance are different from other cryptocurrency exchanges.<\/strong> Typically LTs have a fixed power, like 3x. But on Binance your leverage varies from 1.5x to 4x. Independent adjustment of the coefficient helps to increase the profit from positions and reduce risks.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

How leveraged tokens work on Binance:<\/strong><\/p>\n

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  • The cease and desist order is largely intended to prevent ongoing trades. Otherwise, some traders may profit early upon learning of an event.<\/li>\n
  • Token balancing (more below) is not done unless required by current market conditions.<\/li>\n
  • Market consumption is reduced, again by hiding the size of the profit. Therefore, it is impossible to know in advance when equilibrium will occur.<\/li>\n
  • Energy tokens are traded on the market.<\/li>\n
  • Each token can be redeemed for the price it represents (NAV, net equity)<\/strong>, and requires payment of a ransom fee. But it is recommended to leave the region without paying, but only through the local market \u2013 it is cheaper.<\/li>\n<\/ul>\n
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    Leveraged tokens are very risky products. They can only be sold if you fully understand the nuances and principles of operation. Such assets can lose more than half of their value in a single day.<\/p>\n<\/div>\n<\/div>\n<\/div>\n

    They are used always<\/span><\/h2>\n
    Crypto Market Volatility<\/figcaption><\/figure>\n