EGLD3SPrice

(EGLD3S)

EGLD3S is a leveraged token designed to deliver three times the inverse daily performance of EGLD. If EGLD's value decreases by 1% in a day, EGLD3S aims to increase by approximately 3%. Conversely, a 1% increase in EGLD would lead to an approximate 3% decrease in EGLD3S. This amplified exposure is achieved through derivatives and daily rebalancing mechanisms to maintain its target leverage.

The primary advantage of trading EGLD3S is the potential for amplified returns. Traders can significantly magnify their profits if EGLD's price moves in the anticipated downward direction. Leveraged tokens also simplify the trading process compared to traditional margin trading, as users avoid the complexities of managing collateral, margin calls, or borrowing funds directly.

EGLD3S, like other leveraged tokens, carries substantial risks due to its rebalancing mechanism and volatility decay. Over longer periods, frequent rebalancing, especially in volatile or sideways markets, can cause the token's value to significantly decay and underperform the underlying asset's inverse movement. Losses are also amplified, meaning a small adverse move in EGLD's price can result in considerable losses for EGLD3S holders. These tokens are generally not suitable for long-term holding.

A key feature of leveraged tokens like EGLD3S, distinguishing them from traditional margin trading, is the absence of direct liquidation risk for the user. The internal rebalancing mechanism manages exposure, preventing a user's position from being liquidated in the same way a margin position would be. However, it's crucial to understand that while liquidation in the traditional sense is avoided, the token can still lose substantial value, potentially even all of its value, if the market moves strongly against its leveraged direction.

EGLD3S is available for trading on cryptocurrency exchanges that support leveraged tokens. Users can find EGLD3S on platforms like LBank, where they can access various leveraged token products designed for amplified exposure to market movements.

EGLD3S is characterized as a high-risk, high-reward trading instrument, and it is generally not considered suitable for long-term investment or for individuals who are risk-averse. Due to its complex mechanics and amplified risks, it's essential for investors to thoroughly understand how leveraged tokens function and only commit capital they can comfortably afford to lose.