Each structured product has its own suitable market conditions, and how to choose is crucial

Volatility is an inherent attribute of the market, which brings opportunities and risks to traders.

As the uncertainty of the global economic environment increases,traders' demand for structured products is gradually shifting from pure pursuit of returns to risk management and diversified allocation, while the requirements for product transparency and liquidity are also increasing.In particular, they pay more attention to asset allocation and risk management, and avoid blindly following trends and speculative behavior. For example, after the 2008 financial crisis, risk management awareness has increased significantly worldwide. According to the survey, in 2023, more than 70% of traders will consider risk management strategies when making investment decisions, while this proportion was only 40% in 2000.

How to find a balance between risk and return as much as possible has become a common consideration for traders and financial platforms and other participants. Snowball products have attracted wide attention in the financial market due to their flexible design, diversified returns and certain risk control mechanisms. Snowball products are structured products linked to market performance, usually with trigger mechanisms and conditional returns. Traders can obtain predetermined returns or protect their principal under certain conditions. In the past five years, the global snowball product market has maintained steady growth.

In addition to the traditional financial field, snowball products are also popular in the emerging crypto market. In order to better respond to and meet the diverse needs of users. After launching Snowball, OKX has now launched Tunbi Snowball to help users trade their own crypto assets and earn returns in the rising market. In particular, for many users who hold BTC and ETH and are still bullish on them in the future, they can meet their needs of holding coins for appreciation while also achieving diversified returns.

Tunbi Snowball

Currently, OKX Tunbi Snowball supports 2 trading methods: bullish BTC and bullish ETH.

Users only need to invest the principal, with zero additional fees.

In addition, you can also customize the subscription period, subscription amount, subscription target, etc. Among them, the starting amount for bullish BTC products is as low as 0.0004BTC, and the starting amount for bullish ETH products is as low as 0.005ETH. The participation threshold is very low and very user-friendly. In addition, OKX Tunbi Snowball can achieve three possible profit scenarios: early stop profit, maximum profit and early warning.

Before introducing the three possible profit scenarios, let's help novice users quickly understand the Snowball product. In simple terms, bullish Snowball products generally set a price range around the target: the lower limit of the range is the warning price, the upper limit of the range is the stop-profit price, and then before the expiration date, see how the target price fluctuates in this range. As a result, three core scenarios are generated.

In general, in scenarios one and two, you can earn profits while guaranteeing the user's principal, but in scenario three, the user's return amount may be lower than the subscription amount, and the guaranteed annualized income may not be able to make up for the loss. At the same time, in extreme cases, the settlement price may also be far lower than the warning price.

In addition to the zero additional fees and low starting investment threshold mentioned above, OKX Tunbi Snowball also has many core highlights. First, there is no need for currency conversion, that is, whether you invest in BTC or ETH, the currency of the return remains unchanged. Second, there is a daily early profit-taking opportunity, that is, OKX will observe the profit-taking price every day to keep up with market trends. Third, a protection mechanism is provided for the decline of the currency price, that is, if the currency price does not break through the warning price downward, the user continues to earn income. If it breaks through the warning price, the order will be settled on the same day.

Snowball VS Tunbi Snowball

Compared to OKX Tunbi Snowball, OKX's original Snowball product provides a bearish option and a higher annualized rate, but the user's principal may be converted into stablecoins.

However, considering that many users prefer to hold BTC or ETH instead of stablecoins, and are optimistic about the underlying assets at the same time, and the original Snowball does not support BTC and ETH currency-based bullishness, in order to fully meet the diversified needs of different users, OKX has now launched Tunbi Snowball, which supports users to use BTC and ETH currency-based bullishness needs.

It is particularly worth noting that in the loss scenario of OKX Tunbi Snowball, it is better for users to terminate the transaction immediately when knocking in, because the funds are returned to the user on the same day, and the user does not have to wait until the end of the product.

In short, OKX Tunbi Snowball and the original Snowball products have their own advantages and disadvantages, and users can choose according to their needs. Each structured product has its own suitable market conditions, and how to choose is crucial.

Tutorial Guide

How to use OKX Coin Snowball? The steps are very simple:

1) Open the OKX App and select [Finance] - [Earn Coins] - [Structured Products] - [Coin Snowball]

2) Taking the bullish BTC as an example, select the product you like based on different reference annualization and term, and click [Next] to enter the subscription page. Enter the [Subscription Quantity], click [Subscription], and complete [Confirmation] to successfully subscribe. 3) Notes on the use of Tunbi Snowball: Tunbi Snowball is not a principal-guaranteed product. As the market fluctuates, there are three settlement situations for Tunbi Snowball subscription (early stop profit, maximum return and warning). In the case of warning, partial losses may be incurred, as shown in the figure below. Innovation Never Stops Market fluctuations are unpredictable. Users can use derivatives in structured products to hedge specific market risks, such as interest rate risk and asset price risk. Through refined risk management strategies, traders can obtain certain returns while protecting the principal as much as possible.

Structured products are an innovative financial instrument in the financial market. By combining underlying assets and derivatives, they are designed to meet the specific risk-return needs of users, increase market trading volume and liquidity, and promote market activity. In particular, structured products with good liquidity can be used as important trading tools in the market to improve market efficiency. Since its emergence, structured products have occupied an important position in the financial field due to their flexibility and diversity.

As the world's leading cryptocurrency trading platform and Web3 technology company, OKX's structured products are in a leading position in the market. Currently, it has successively launched Dual Currency Win, Seagull, Shark Fin, Snowball, and Tunbi Snowball. In the ever-changing cryptocurrency market, user needs are constantly evolving, driving the pace of platform optimization and innovation. OKX is committed to continuously optimizing products and services through technological innovation to meet the diversified and dynamically changing needs of users.

In addition, through technological innovation, OKX has not only improved the performance and security of the trading platform, but also met the needs of users for diversified products and high-quality user experience. In the ever-changing cryptocurrency market, OKX strives to ensure that every transaction of users on the platform is safe, convenient and efficient.

Continuously meeting the needs of a wider range of users will be the key to the scale of trading platforms and even the crypto industry.

Disclaimer

The content of this article is for reference only. This article only represents the author's views and does not represent the position of OKX. This article is not intended to provide (i) investment advice or investment recommendations; (ii) an offer or solicitation to buy, sell or hold digital assets; (iii) financial, accounting, legal or tax advice. We do not guarantee the accuracy, completeness or usefulness of such information. Holding digital assets (including stablecoins and NFTs) involves high risks and may fluctuate significantly. You should carefully consider whether trading or holding digital assets is suitable for you based on your financial situation. Please consult your legal/tax/investment professionals regarding your specific situation. You are solely responsible for understanding and complying with applicable local laws and regulations.

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