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Gate.io Blog Gate.io Quick-fire Questions on Dual Currency Product

Gate.io Quick-fire Questions on Dual Currency Product

25 May 17:42



Q: What is a Dual Currency Product
A: Dual currency product is a non-guaranteed wealth management product with floating income involving two currencies. The investor may buy the dual currency product with any currency specified in the contract. The final settlement currency is determined by the settlement price of the two currencies at the maturity date and the reference price stipulated in the contract. The rate of return offered by dual currency products is fixed, and investors can get the guaranteed income at a fixed interest rate, but they may also lose money because of the settlement currency and the settlement price.


Q: When can I buy dual currency products? Is it redeemable?
A: The Gate.io platform has a flexible purchase period, with no application deadline. Users can make purchases at any time before the contract for the dual currency product expires. Once completed, a dual currency product cannot be redeemed within the holding period.


Q: I found that the rate of return on the page is different after I purchased the dual currency product. Will the rate of returns change?
A: The yield varies with the market, but the yield on each contract does not change after the purchase, and the final yield is equal to the yield shown on the contract page at the time of purchase.


Q: Why should I buy dual currency products?
A: A dual currency product allows you to charge an extra percentage when your expectations are aligned with the market. And when the expectation is contrary to the market, you can also get certain compensation.


Q: How to interpret the name of A dual currency product?
A: BTC-11JUN21-45000-C
BTC means that the currency is BTC/USDT (the default base currency of gate.io is USDT) , and 11JUN21 means that the expiry date is June 11. The time difference between the due date and the current date is the holding limit. 45000 represents the contract reference price of 4500, C represents bullish, on behalf of that the user needs to buy the product with BTC.
BTC-11JUN21-32000-P
P for bearish, on behalf of that the user needs to use USDT to buy the product.


Q: How to calculate the return?
Answer: for example



Assuming that the investor buys the product on May 1st with a BTC, the maturity date is 2021, and the holding period is 10 days.Assuming that the investor buys the product on May 1st with a BTC, the maturity date is 2021, and the holding period is 10 days.
If the settlement price of BTC/UDST at maturity is less than 40,000, the recovery currency is BTC and the final recovery is (1 + 36.5%/365 * 10) * 1 = 1.01(BTC) .
If the settlement price of BTC/UDST at maturity is greater than 40,000, the recovery currency is USDT and the final recovery is (1 + 36.5%/365 * 10) * 40,000 = 40,400(USDT) . If the settlement price of BTC/UDST at maturity is greater than 40,000, the recovery currency is USDT and the final recovery is (1 + 36.5%/365 * 10) * 40,000 = 40,400(USDT) .


*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all other cases, legal action will be taken due to copyright infringement.

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