XTZ3LPrice

(XTZ3L)

XTZ3L is a 3x long leveraged token designed for traders seeking amplified exposure to the daily price movements of Tezos (XTZ). It aims to deliver three times the daily percentage returns of the underlying XTZ asset. This financial product is offered on cryptocurrency exchanges like LBank, providing a convenient way to gain leveraged exposure without directly managing a leveraged position through futures or margin trading.

XTZ3L operates by automatically rebalancing its underlying portfolio daily to maintain its 3x leverage target. At the end of each trading day, the token's exposure is adjusted to reflect three times the daily performance of XTZ. While this daily rebalancing helps sustain the target leverage, it can lead to 'volatility decay' over longer periods. Users should also be aware of management fees, which are typically charged by the token issuer for maintaining and managing the leveraged position.

XTZ3L carries substantial risks due to its leveraged nature. Key risks include volatility decay, where cumulative returns over time can be less than three times the underlying asset's returns, especially in choppy or sideways markets. There's also the risk of liquidation if the underlying asset experiences a sharp, unfavorable price movement, potentially leading to significant capital loss. Users are also exposed to the counterparty risk of the exchange or provider issuing the token.

XTZ3L is available for trading on various cryptocurrency exchanges. Based on the provided information, it can be found as a trading pair, such as XTZ3L/USDT, on platforms like LBank. Availability may vary across different platforms, so it is always advisable to check the specific exchange's listings to confirm where XTZ3L can be bought and sold securely.

The underlying asset that XTZ3L tracks is Tezos, which is commonly identified by its ticker symbol XTZ. XTZ3L is specifically designed to provide leveraged exposure to the daily price movements of Tezos. Therefore, the performance of XTZ3L is directly tied to and aims to amplify the daily performance of the XTZ cryptocurrency.

Due to the inherent mechanics of daily rebalancing and potential volatility decay, XTZ3L is generally not suitable for long-term holding. Leveraged tokens are primarily designed for short-term trading strategies to capitalize on daily price movements. Holding them for extended periods, especially in volatile or sideways markets, can lead to significant erosion of value due to the compounding effects of rebalancing and ongoing management fees, even if the underlying asset eventually moves in the desired direction.