Dual currency investment products are a sophisticated, non-principal-guaranteed financial tool that utilizes options contracts to generate potential high yields. They offer a flexible way to earn returns based on market movements, supporting various investment strategies for assets like BTC, ETH, and USDT. With newer options including XRP, LTC, ETC, and EOS, these products cater to diverse portfolios. Investors can select from multiple strike prices and expiration dates, combining them to target dynamic and substantial returns.
Getting Started with Dual Currency Investments
To begin, navigate to the financial section of your preferred platform and locate the earnings or investment area. Look for the dual currency product option. These tools are designed for ease of use, allowing quick access to a range of market opportunities.
When subscribing, consider the displayed annualized yield, but remember that the final settlement currency is not fixed. It depends on whether the market price of the underlying asset (like BTC) at expiration is above or below your chosen strike price.
How It Works: Practical Examples
Selling High with a BTC Example
Assume BTC's current price is $27,784. You select a product with a strike price of $28,000 and an expiration date set for a future point. By subscribing with 0.1 BTC, you anticipate two potential outcomes:
- If BTC remains below $28,000 at expiration, you earn a yield in BTC, receiving your principal plus earnings, totaling approximately 0.10569165 BTC.
- If BTC rises above $28,000, you effectively sell your BTC at the strike price, receiving a USDT payout instead, totaling about 2959.366424 USDT.
Buying Low with a USDT Example
With BTC at $27,785, you might choose a strike price of $27,000 using 1000 USDT. This strategy aims to accumulate more BTC if the price drops:
- If BTC falls to or below $27,000 at expiration, you buy BTC at a discount, receiving approximately 0.03885053 BTC.
- If BTC stays above $27,000, you earn a yield in USDT, getting your principal back plus about 1048.96431 USDT.
Key Considerations for Investors
- Selecting Strike Prices: For earning extra crypto without swapping, choose a strike price far from the current market rate. To facilitate buying or selling near current levels, pick a closer strike.
- Settlement Timing: The settlement price is based on the average index price between 15:00 and 16:00 (UTC+8) on the expiration date. Funds typically arrive in your account by 18:00 (HKT) but may delay up to 24 hours due to processing.
- Risk Awareness: These are non-guaranteed products subject to market volatility. They operate through options mechanisms, so understand the risks and invest cautiously. 👉 Explore advanced investment strategies
Frequently Asked Questions
What are dual currency investments?
They are option-based financial products that let you earn yields by speculating on price movements of cryptocurrencies, with settlements in either the base or quote currency.
How do I choose the right strike price?
If your goal is to accumulate more crypto, select a strike price away from the current rate. For executing trades near market levels, choose a closer strike to increase成交 chances.
When do I receive my investment returns?
Settlement usually occurs by 18:00 HKT on the expiration day, though delays up to 24 hours are possible based on network conditions.
Are these products safe?
They are non-principal-protected and involve market risks. Only invest what you can afford to lose, and ensure you understand the product mechanics.
Can I use stablecoins like USDT?
Yes, products support various assets, including stablecoins, allowing flexible strategies for both volatile and stable cryptocurrencies.
What happens if the market is highly volatile?
High volatility can lead to unexpected settlement currencies. Diversifying strategies and strike prices can help manage this risk.