While this does generally describe how Leveraged Tokens work, it contains approximations and should not be taken as precise. Dolby Atmos is a revolutionary new audio platform that gives you unprecedented and precise control over the placement and movement of sound within a movie theatre.
In addition, leveraged tokens that are over leveraged rebalance whenever their leverage reaches 33% higher than its target. This happens, roughly, when the underlying asset moves roughly 11.15% for BULL tokens, 6.7% for BEAR tokens, and 30% for HEDGE tokens. So in fact the leverage token performance will be 3x the underlying asset since the asset last moved 6-12% that day if there was a large move and the token lost to it, and since midnight UTC if there wasn’t. For instance you can go to the ETHBULL/USD spot market and buy or sell back ETHBULL.
What is FTX?
An Field Training Exercise (FTX) is high-cost, high-overhead exercise where the entire battalion and its supporting combat support and combat service support units deploys to field locations to conduct tactical operations under simulated combat conditions.
It enables artists to treat specific sounds as individual entities, called audio objects. The Dolby Atmos cinema processor then determines which of a cinema’s huge array of front, back, side, and overhead speakers it will use to recreate this lifelike movement. While BitMEX only offers futures, you are able to structure a futures instrument that can have a payout that is quite similar to that of a vanilla option. You can enter into a highly leveraged futures position and place market stops below it. Remember that put sellers understood the risk and demanded huge premiums for buyers being foolish enough to sell those options.
In Dolby Atmos, each of those sounds can be created as an independent entity—an audio object. Put all the objects together, and you’ll feel like you’re actually in the restaurant, not just watching a scene. In a Dolby Atmos theatre, every speaker—as many as 64 total—is powered independently and gets its own separate audio feed. In addition to the overhead speakers, Dolby Atmos typically adds more surround speakers and screen speakers.
Other than the standard trading fees, there are two types of fees on leveraged tokens. There is a 0.10% creation and redemption fee; note you only pay this if you create/redeem, not if you buy in a spot market or convert.
In addition, any token will rebalance if an intraday move causes its leverage to be 33% higher than its target. So if markets move down enough that BULL token is 4x leveraged it will rebalance. This corresponds to market moves of roughly 11.15% for BULL tokens, 6.7% for BEAR tokens, and 30% for HEDGE tokens. HALF tokens do not have intraday rebalances; since they are 1/2 leveraged they cannot get liquidated. Thus, every day each BULL/BEAR/HEDGE token reinvests profits if it made money.
Users can buy leveraged tokens just like normal tokens on a spot market. However, there is no need for them to manage collateral, margin, liquidation prices, or anything that a normal margin user needs to manage. Funding ratesaren’t fees, and FTX does not net charge money on them; instead they’re transfers between longs and shorts. If perpetuals are trading above their index then longs will pay shorts, and vice versa. Thus with each funding cycle half of the Leveraged Tokens will win and half will lose.
However, over longer time periods leveraged tokens will perform differently than a static position. Finally, you can create or redeem leveraged tokens.This is not recommended unless you have read through all of the documentation on leveraged tokens. Creating or redeeming leveraged tokens will have market impact and you won’t know what price you ultimately get until after you’ve created or redeemed. That means that–unlike margin positions–you can withdraw them from your account! You go to your wallet and send leveraged tokens to any ETH wallet.
You can also buy or sell leveraged tokens directly from your wallet pageusing the ‘CONVERT’ function. If you find a token and click ‘CONVERT’ on the right hand side of the screen, you’ll see a dialog box in which you can easily turn any of your coins on FTX into the leveraged token. Note that FTX isn’t the only exchange that lists leveraged tokens! You can trade FTX’s Leveraged Tokens on BitMax, Gopax, and others; see here for a partial list. Because they’re ERC20 tokens, the ‘BTCHG’ on Gopax is the same token as ‘HEDGE’ on FTX; you can send them back and forth using your wallet.
Combining products, services, and technologies, Dolby Atmos represents a complete end-to-end audio platform for movies well into the future. Some elements of a movie soundtrack, however, still benefit from a channel-based approach—for instance, ambient effects and music backgrounds. So a Dolby Atmos soundtrack also includes a more conventional channel-based “bed,” together with the audio objects. Dolby Atmos packages up to 128 audio tracks—a 9.1 bed and up to 118 audio objects.
This will destroy the token; cause the ETHBULL account to sell back the $30,000 worth of futures; and credit your account with $10,000. Each leveraged token gets its price action by trading FTX perpetual futures. To do so you send in $10,000, and the ETHBULL account on FTX buys $30,000 worth of ETH perpetual futures. While your account’s holding of a leveraged token cannot be liquidated, the leveraged token itself theoretically could be. In addition, while leveraged tokens attempt to avoid getting liquidated, this does not prevent them from being able to suffer heavy losses.
- FTX Leveraged tokens are ERC20 & BEP2 tokens that have leveraged exposure to crypto.
- You can buy leveraged tokens just like normal ERC20 tokens on a spot market.
You can find a leveraged token’s spot market by going to the tokens page and clicking on the name; or by clicking on the underlying future on the top bar and then on the name of the market. BULL/BEAR/HEDGE tokens will automatically reinvest profits into the underlying asset; so if your leveraged token position makes money, the tokens will automatically put on 3x leveraged positions with that. To do that, you can send your $10,000 of ETHBULL back to FTX, and redeem it.
This is just taken out of the net asset value of the leveraged tokens; you won’t see an actual token balance decrease or USD charge in your account. HALF tokens have 0.01%/day management fees instead, because they’re lower leverage. A common misconception is that leveraged tokens have exposure to volatility, orgamma. Leveraged tokens do well if markets move up a lot and then up a lot more, and poorly if markets move up a lot and then back down a lot, both of which are high volatility. The real exposure that they have is primarily toprice direction, and secondarily tomomentum.
If you put on a 3x long ETH position and over the course of a month ETH falls 33%, your position will be liquidated and you will have nothing left. But if you instead buy ETHBULL, the leveraged token will automatically sell off some of its ETH as markets go down–likely avoiding liquidation so that it still has assets left even after a 33% down move. You can create or redeem a leveraged token by going to the tokens page and clicking ‘more info’. That means that they will get their exposure to the underlying assets through the perpetual futures. That also means that they will be subject to the price movements, premiums, funding rates, etc. of the perpetual futures.
FTX Exchange Tutorial – How To Trade & Order Types Explained
If it lost money, it sells off some of its position, reducing its leverage back to 3x in order to avoid liquidation risk. This creation and redemption mechanism is what ultimately enforces that the leveraged tokens are worth what they’re supposed to be. Leveraged tokens are ERC20 tokens that have leveraged exposure to crypto.
FTX Leveraged tokens are ERC20 & BEP2 tokens that have leveraged exposure to crypto. Using ETHBULL, a 3x long ETH token as an example, for every 1% ETH goes up in a day, ETHBULL goes up 3%; for every 1% ETH goes down, ETHBULL goes down 3%. You can buy leveraged tokens just like normal ERC20 tokens on a spot market. No need to manage collateral, margin, liquidation prices, or anything like that; you just spend $10,000 on ETHBULL and have a 3x leveraged long coin. Conversely, BULL/BEAR/HEDGE tokens will automatically reduce risk if they lose money.
This favors the bullish investor (optimistic view of the market) who gets to buy single call options at a relatively favorable price. The delta measures risk in terms of the option’s exposure to price changes in its underlying stock. Teflon-coated bullets, sometimes colloquially, also known as “cop killer bullets”, are bullets that have been covered with a coating of polytetrafluoroethylene.
Leveraged tokens, like the rest of FTX, are not being offered to US users. The price of options (known as the premium) is determined by the market and is based on factors of intrinsic and extrinsic value. Intrinsic value is the difference between the underlying asset spot price and the strike price but only in reference to a positive value to the option holder. When an option is not beneficial to the buyer, it is said to have zero intrinsic value and only extrinsic value, such as time value, strike price and volatility.
In the above cases, leveraged tokens do well–or at leastbetter than a margin position that starts out the same size–when markets have momentum. However they doworse than a margin position when markets mean-revert. This difference comes becausethe compounded increase on a new price is different from moving up 30% from the original price. If you move up twice, the second 14.3% move is on a new, higher price–and so it’s actually a 16.4% increase on the original, lower price.
This means you can custody your own leveraged tokens; it also means you can send them to other platforms that list the leveraged tokens, like Gopaxor BitMax. The Dolby Atmos processor in the theatre intelligently assigns each audio track. It maps the bed channels to screen channels or surround arrays, and positions objects within the room. It’s all reproduced in real time based on where the loudspeakers are.
Dolby Atmos scales to the specific speaker complement of a theatre, so the effects will be the same regardless of the auditorium’s size. At an individual level, options allow market participants to generate income, make speculative bets, and hedge their positions, particularly amid market volatility. In an option contract, there is a “writer,” or seller, of the option and a buyer.
How Do Leveraged Tokens Rebalance?
Investors who felt the need to buy puts at any price were the underlying cause of the volatility skew at the time. Most of the time OTM options expire worthless (option is less than the market value). Overall, owning inexpensive, far OTM call options proved to be a losing proposition. Thus it is not strategic for most investors to own far OTM call options. The price difference between the $1,940 and $1,840 options is quite substantial, especially when the put is 3 points farther out of the money.