Pionex Dual Investment allows you to buy low or sell high at your desired price and date.You can also earn a high-interest yield for your asset in the meantime!
- 1 What is the Dual investment in Pionex?
- 2 A Good Tool to Buy the Dip & Earn More Coins
- 3 1288USD Dual investment trial fund
What is the Dual investment in Pionex?
An example is as follows:
You have $100K dollars, and you think Bitcoin will fall to $40,000 in 3 days and try to buy the dip. Unfortunately, after 3 days, Bitcoin did not fall to $40,000. However, You can still get an extra $328, which is almost a 40% annualized return with Pionex Dual Investment, which even has lower risk than other products in the crypto market!
If you want to know more about Pionex Dual investment, we have to explain a slightly complicated thing first, and this is also the underlying core structure of Pionex Dual investment, that is, the “Option”.
What is “Option”?
If you have invested in traditional finance, you may have heard of or even traded it, but for new investors, it will be a bit complicated. The following will try to explain it more understandably.
- Option: Simply speaking, it’s a contract for the right to trade a specific commodity (Investment targets), which is also a “right to decide whether to perform the contract within a period.”
Let’s take a simple example.
Suppose we’ve booked a train ticket for February 15th online on February 10th. The train ticket system said the payment should be made before 23:59:59 on February 13th. Otherwise, it would be canceled. That is to say. Before February 13, we can all consider whether to pay for the ticket because we can perform the contract.
So the buyer can decide whether to perform the contract for a while, which is the “American option.”
The trading “option” can be divided into:
- Buy Option/ Call = the right to buy (the right to buy the investment targets at the strike price)
- Sell Option/ Put = the right to sell (the right to sell the investment targets at the strike price)
A simple example of buying & selling eggs
Buy Option/ Call
Suppose you‘re running a restaurant and you are afraid that the price of eggs will rise due to a shortage in the future, which will cost more money to purchase eggs. Therefore, you have agreed with your friend, selling eggs, that no matter how the price of eggs changes in half a year, you can use $40 per pound to buy eggs from him. You must sign a contract with him with a premium of $1,000, but you have the right to choose whether or not to perform the contract, and your friend is also obliged to bear the risk of price changes. This right is called “Buy Option/ Call.”
You “buy” the Buy Option/ Call, and your friend “sells” the Buy Option/ Call.
If the price of eggs drops to &20 per pound after half a year, you can choose not to fulfill the contract and buy eggs at $20 per pound on the market, and your friend will earn $1,000 as royalties. But if the price of eggs rises to $70 per pound after half a year, you choose to fulfill the contract and buy eggs at $40 per pound, and your friend has to bear the price difference, and the market price is $70 per catty. Eggs are sold to you for $40 per pound. Although your friend receives royalties, the losses may be more significant due to increased egg prices. After half a year (a specified time), the buyer can exercise the option, which is the “European option.”
Another angle from this example
Sell Option/ Put
Suppose your friend is afraid that the price of eggs in the future will drop. Therefore, he has agreed with you that no matter how the cost of eggs changes in half a year, he can sell the eggs to you at $40. In exchange for the right to this price, he must sign a contract with you with a premium of $1,000, but he also has the right to choose whether or not to perform the contract, and you are also obliged to bear the risk of price changes. This right is called “Sell Option/ Put.”
Your friend “sells” the Sell Option/ put, and you “buy” the Sell Option/ Put.
If the price of eggs drops to $20 per pound after half a year, then your friend chooses to fulfill the contract and directly sell the eggs at the contract price of $40 per pound to you while the market price is $20 per pound now. You have to bear the price difference, and the loss may be more significant because of the drop in egg price. But if the price of eggs rises to $70 per pound after half a year, then your friend chooses not to fulfill the contract and sell the eggs to others at $70 per pound, and you earn $1,000 in royalties.
Pionex Dual investment
From the previous example, we can see that the option buyer has limited losses (loss of premiums) and unlimited profits (the price difference). The option seller is that the loss may be infinite (the price difference), and the profit is limited (the premiums). As investors, you naturally want to be the option buyer. After all, the seller’s risk is high, and the profit is limited. But after all, someone buys, and someone sells. Not everyone in the market can’t be a buyer. There must always be some sellers, making various financial trading strategies. For example, in the field of foreign exchange, there is a dual currency investment (DCI) strategy, which turns the seller into a “limited profit” but a “limited loss” the seller might make. The investment return of DCI is “foreign currency deposit interest” plus “premiums” for selling exchange rate options, combined with exchange rate changes and different settlement currencies to make profits.
EUR/USD as Example
Suppose now the EUR/USD exchange rate is 1.1, and I invest 1,000 EUR into the EUR/USD trading pair. Then when the euro rises by 1% and the value of the US dollar remains unchanged (the exchange rate becomes 1.111), it means that I can use the original 1,000 euros to buy 1,111 US dollars, which is equivalent to earning 1% more US dollars.
Pionex Dual investment
Pionex Dual investment is basically the same. It is a non-guaranteed investment tool with a high annualized rate of return.
- Suppose you buy USDT-BTC Dual investment (invest USDT). There may be two results on the settlement date:
- BTC market price ≥ Target price on the settlement date:
The system gives the income in USDT and returns the interest + investment (USDT).
- BTC market price < Target price on the settlement date:
The system gives the income in BTC and returns the BTC equivalent to “the interest and investment” at the target price, and we can get more BTC than expected.
You will receive the returns in USDT if the target price is reached. You will accept the returns in Target currency if the target price does not reach. Each purchased product has a settlement date. We will take an average of the market price in the last 30 minutes before 16:00 (UTC+8) on the delivery date as the Settlement price.
More info about how to invest in Dual investment: Click Here
A Good Tool to Buy the Dip & Earn More Coins
Invest USDT to buy the dip: Earn More Coins!
If the settlement price is 39,542 USDT today, which has already broken the target price of $40,000 USDT, the system will give you 0.00250405 BTC by exchanging $100 investment + 0.162 USDT interest.
From here, we can use Pionex Dual investment to “buy the dip”
Suppose we have some funds to buy the dip, but if we simply place a limit order there and wait for the price to be triggered, then those funds may be idle there for a long time, which is a pity.
Then we can try to use Pionex Dual investment, which can not only keep the funds here to buy the dip but also allow the funds to earn some extra interest income.
For example. the current price of BTC is $43,957.87 USDT, and you plan to use 100 USDT to buy a small dip when Bitcoin falls to 37,000 USDT.
- At this time, you can manually place a limit order of $37,000 to buy 0.0027 BTC. If the currency price has been unable to fall to $37,000 USDT, then you will always hold 100 USDT, if it falls more than $37,000, you will get 0.0027 BTC.
- On the other hand, if you buy a “USDT-BTC Pionex Dual investment “1-day order of BTC $37,000 target price. If the BTC price on the settlement day is lower than $37,000, then you will successfully use $37,000 to buy the dip, and at the same time, you will get a 6.53% annualized interest rate (0.02% real return), and you can get more Bitcoin than expected. If the BTC price does not fall on the day of settlement, even if there is no deal, you will still get an annualized interest rate of 6.53% (0.02% real return) and an extra 0.02 USDT.
Invest Coins to earn more coins
If you want to invest BTC to earn more BTC, which is similar to the above strategy. If the price does not break the target price, especially in the down market, you can earn more BTC
1288USD Dual investment trial fund
Anyone who has passed the “Second-level KYC” and “Still not uses Pionex Structured Products Yet” can receive a $1,288 USDT Dual investment trial fund. Of course, this trial fund can only be used to trade with Dual investment, and you cannot withdraw it directly.
- For example for using the $1288 trial fund Assuming that the BTC current price is $42,000, you use the 1,288USDT trial fund to subscribe for a 3-day “USDT-BTC” Dual investment with a target price of $40,000 and a yield of 0.3%.
- If the currency price did not fall below $40,000 after 3 days, you would have gotten back 1288USDT + 0.3% interest of 3.864 USDT(1288 * 0.3%). Since Pionex will recover the trial fund, you will actually get the interest of 3.864 USDT.
- As another result, if the currency price falls below $40,000 after 3 days, then the investment interest will be settled in BTC, that is, BTC will be purchased at a price of $40,000 target price. You will get 0.0322 BTC ( investment ) + 0.0000966 BTC (interest). Since Pionex will recover the trial fund, you will actually get 0.0000966 BTC of the interest.
- No matter what the result is, you will earn some interest in BTC or USDT, which is can be traded and withdrawn. You don’t have to risk your own money to try Pionex Dual investment.
More info about how to use $1288 Trial funds: Click Here
- How to get more trial funds?
- Share your invitation link to your friends
- Invite friends to sign up and complete Lv.2 identity verification.
- You will receive 1,288 USDT trial funds after your friends redeem the interest of the trial order; you can receive additional 12,888 USDT trial funds after your friends invest with their funds.