AscendEX’s leveraged tokens has a trading mechanism similar to spot trading. Please see further details below: 

1.     Leveraged tokens on AscendEX are essentially token pairs on the spot market and are settled in USDT. Click HERE to view all leveraged tokens available for trading on the platform.

2.     Users are allowed to trade leveraged tokens at any time without having to put up any collateral.

3.     The naming rule of leveraged tokens: underlying asset + leverage + the side of trade. Take BTC3L as an example, BTC is the underlying asset, 3 means 3X leverage, L stands for going long on the market.

4.     AscendEX’s leveraged tokens generally offer 3X and 5X leverage, with a few of them available with just 3X leverage. Please see further AscendEX’s Leveraged Tokens page before trading.

5.     Like spot trading, leveraged tokens are only traded in one direction, i.e., buy low and sell high. As for the same underlying asset, AscendEX provides leveraged tokens for trading in both sides to meet users’ trading demands by enabling them to either short or long the leveraged tokens.

For instance, with BTC as the underlying asset, users can choose to trade leveraged tokens BTC3L and BTC5L in long positions, or BTC3S and BTC5S in short positions. If you buy BTC3S or BTC5S, it means you are short on the market. If the BTC market declines as expected, the net value of BTC3S and BTC5S will go up. Likewise, if the BTC market rallies against expectations, the net value of BTC3S and BTC5S will decline. 

Please read the following two docs to learn more details on leveraged token trading.

How to Trade Leveraged Tokens on AscendEX (PC)

How to Trade Leveraged Tokens on AscendEX (APP)


Risk Disclosure: As an emerging financial derivative, theoretically, there are no liquidation risks for a leveraged token. However, with incorrect trend predictions, there will be a risk that the net asset value of a leveraged token approaches 0 amid extreme market conditions. Please fully understand the rules before engaging in leveraged token trading and be cautious to reduce potential risks.