ETF pricing mechanism

ETF pricing mechanism

Net worth = basket position × underlying asset price + basket loan

Basket position = the number of underlying assets held by each ETF Basket loan = the number of loan coins held by each ETF

As a special leverage product, ETF's constant leverage multiple at the beginning of each day is realized through the position adjustment mechanism. If the bottom assets float to win, the bottom positions will increase. If the bottom assets produce a loss, so the bottom of the position will be reduced.

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