SOXSB climbs into the gainers’ leaderboard—first, understand this inverse product
$SOXSB is up—does that mean the semiconductor sector is strengthening? The “Bear” in its name already tells you the direction.
In this snapshot, it’s reported at 35.59 USDT, up 7.69% over the past 24 hours, ranking 8th on the gainers’ list. SOXSB corresponds to a tokenized product of the Direxion 3x Inverse Semiconductor ETF, which is part of bStocks. The underlying fund’s goal is: before fees, achieve -3x of the NYSE Semiconductor Index’s single-day performance.
Two words can’t be missed—single day. The fund resets its leverage target every day. If the move spans multiple trading days, the outcome is affected by daily volatility and compounding. Simply multiplying the index’s one-month rise/fall by negative three can’t directly produce the product’s one-month performance.
Also, the leaderboard Binance uses is based on a rolling 24 hours, which doesn’t match the start and end times of a single trading day in U.S. stocks. Since the tokenized product also has its own quotes in the secondary market, you can’t back-calculate how much the semiconductor index actually fell just from this 7.69%.
It appears in the USDT spot leaderboard, yet when you research it, you need to incorporate the rules of the underlying securities and the fund. For me, the most worth clarifying from this listing is this: assets on the same gainers’ list can be expressing entirely different directions.
If two assets on the same gainers’ list move in opposite directions, will you look at them separately?
This article compiles public information and reflects personal views only, and does not constitute any investment advice. Trading pair turnover is not equal to net capital inflow or outflow.
$SOXSB is up—does that mean the semiconductor sector is strengthening? The “Bear” in its name already tells you the direction.
In this snapshot, it’s reported at 35.59 USDT, up 7.69% over the past 24 hours, ranking 8th on the gainers’ list. SOXSB corresponds to a tokenized product of the Direxion 3x Inverse Semiconductor ETF, which is part of bStocks. The underlying fund’s goal is: before fees, achieve -3x of the NYSE Semiconductor Index’s single-day performance.
Two words can’t be missed—single day. The fund resets its leverage target every day. If the move spans multiple trading days, the outcome is affected by daily volatility and compounding. Simply multiplying the index’s one-month rise/fall by negative three can’t directly produce the product’s one-month performance.
Also, the leaderboard Binance uses is based on a rolling 24 hours, which doesn’t match the start and end times of a single trading day in U.S. stocks. Since the tokenized product also has its own quotes in the secondary market, you can’t back-calculate how much the semiconductor index actually fell just from this 7.69%.
It appears in the USDT spot leaderboard, yet when you research it, you need to incorporate the rules of the underlying securities and the fund. For me, the most worth clarifying from this listing is this: assets on the same gainers’ list can be expressing entirely different directions.
If two assets on the same gainers’ list move in opposite directions, will you look at them separately?
This article compiles public information and reflects personal views only, and does not constitute any investment advice. Trading pair turnover is not equal to net capital inflow or outflow.
