If you want to understand Pionex Dual Investment, we first need to explain a slightly more complex concept: the option, which is the core structure behind Dual Investment.
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What is “Option”?
If you’ve invested in traditional finance, you may have heard of or even traded options. For new investors, the concept can seem complicated. Simply put:
An option is a contract that gives you the right to trade a specific commodity (or investment target), and it also gives you the “right to decide whether to execute the contract within a specified period.”
Let’s take a simple example.
Suppose you book a train ticket online on February 10th for a journey on February 15th. The system requires payment before 23:59:59 on February 13th, or the ticket will be canceled. This means that until February 13th, you have the choice to pay or not—you can decide whether to perform the contract.
In trading terms, this ability to choose within a period is called an “American option”.
Types of Trading Options
Buy Option / Call – The right to buy the investment target at the strike price.
Sell Option / Put – The right to sell the investment target at the strike price.
A simple example of buying & selling eggs
Buy Option/ Call
Suppose you run a restaurant and fear that the price of eggs will rise in the next six months, increasing your costs. To protect yourself, you agree with a friend who sells eggs: regardless of how the price changes, you can buy eggs from him at $40 per pound. You pay a premium of $1,000 for this contract.
You buy the Call option.
Your friend sells the Call option.
Scenarios after six months:
If the market price drops to $20 per pound, you can choose not to execute the contract and buy eggs at $20 on the market. Your friend keeps the $1,000 premium.
If the market price rises to $70 per pound, you can execute the contract and buy eggs at $40 per pound. Your friend bears the loss, although they keep the $1,000 premium.
If the option can only be exercised at a specific time (after six months), it is called a “European option”.
Sell Option/ Put
Now suppose your friend fears that egg prices might drop in the next six months. They agree with you: no matter how prices change, they can sell eggs to you at $40 per pound. They pay a $1,000 premium for this contract.
Your friend sells the Put option.
You buy the Put option.
Scenarios after six months:
If the market price drops to $20 per pound, your friend executes the contract and sells eggs to you at $40 per pound. You bear the loss, while your friend avoids the risk of price drops.
If the market price rises to $70 per pound, your friend chooses not to execute the contract and sells eggs to others at $70 per pound. You keep the $1,000 premium.
What is Dual investment?
From the previous example, we can see that:
The option buyer has limited losses (the premium paid) and potentially unlimited profits (from price differences).
The option seller has potentially unlimited losses (from price differences) and limited profits (the premium received).
As investors, most naturally prefer to be the option buyer because the risk is limited and the profit potential is higher. However, for every buyer, there must be a seller—markets require both sides. This creates opportunities for various financial strategies.
For example, in the foreign exchange market, there is a Dual Currency Investment (DCI) strategy. Here, the seller has limited profit but also limited loss. The investment return comes from “foreign currency deposit interest” plus “premiums” from selling exchange rate options. Combined with exchange rate changes and different settlement currencies, this can generate profits.
EUR/USD as an Example
Suppose the EUR/USD exchange rate is 1.1, and you invest 1,000 EUR. If the euro rises by 1% and the US dollar remains unchanged (exchange rate becomes 1.111), you can use your 1,000 EUR to buy 1,111 USD—earning 1% more in USD.
Pionex Dual investment
Pionex Dual Investment works similarly. It is a non-principal-protected structured product with a high annualized return. Dual Investment allows you to buy at a lower price on your chosen date while earning a high-interest yield on the asset.
The underlying asset
The investment currency
The target price
The settlement (delivery) date
Your returns will be denominated in either your investment currency or an alternate currency, depending on the settlement outcome.
Example:
Suppose you buy a USDT-BTC Dual Investment (investing in USDT). On the settlement date, there are two possible outcomes:
BTC market price ≥ Target price
You receive your income in USDT, which includes the interest plus your original investment (USDT).
BTC market price < Target price
You receive your income in BTC, including the BTC equivalent of your interest and investment based on the target price—potentially resulting in more BTC than you would have received otherwise.
Key points to remember:
If the target price is reached, returns are paid in the investment currency (e.g., USDT).
If the target price is not reached, returns are paid in the target currency (e.g., BTC).
Each product has a settlement date.
The settlement price is calculated as the average market price during the last 30 minutes before 16:00 (UTC+8) on the delivery date.
How to invest in Dual investment?
To get started, simply follow the tutorials for the Dual Investment strategy and create your first order today.
In APP：
Step 1: Open the Pionex app and go to [Earn] - [Structured] - [+ Invest]. Select [Dual Investment] from the list of structured products.
Step 2: Choose the category based on your investment asset type and the asset you wish to purchase. Next, select the tab according to the product’s settlement date. For this tutorial, we’ll choose [Today]. If you prefer a different settlement date, select the appropriate tab. Then, choose the suitable Dual Investment product and tap [Purchase].
Step 3: Enter your investment amount and tap [Continue]. Review the confirmation window carefully, then tap [Continue] again to finalize your Dual Investment order.
On the Web：
Step 1: Log in to your Pionex account, click [Earn] in the upper menu bar, then select [Structured] - [Dual Investment].
Step 2: Choose the category based on your investment asset type and the asset you wish to purchase. Then, select the suitable Dual Investment product and click [Details] - [BUY].
Step 3: Enter your investment amount and click [BUY]. Review the confirmation window carefully, then click [BUY] again to finalize your Dual Investment order.
Dual Investment Order Display
Investment Currency | The currency in which you have purchased the dual investment. |
Settlement Currency | The currency you will receive when the order expires. It will be either the target currency or USDT. Each product is settled depending on whether it reaches the target price. |
Settlement Date | The date when the order is settled. Return from the order will be automatically credited into your account on the day after 16:00 (UTC+8) |
ROI | The income return on investment. It is expressed in percentages and is used to calculate the settlement amount. |
APY | Annualized Yield is calculated as the equivalent annual return. If you continue purchasing with the given yield for a whole year. Annualized Yield = Yield / (Expiry Date – Today) * 365 *The holding period is actuarial to milliseconds. |
Target Price | Target Price is a benchmark price. On Expiry Day, the Settlement Price will be compared against this benchmark price. |
Settlement Price | The average of the Settlement Index in the last 30 minutes before 16:00 (UTC+8) on the Expiry date. |
Settlement Index | Settlement Index is derived from seven leading BTC-USD exchanges, including Bittrex, Bitstamp, Coinbase Pro, Gemini, Kraken, Itbit, and LMAX Digital. |
How to Calculate Your Return
When the target price is reached, your investment and interest income will be converted into USDT, using the target price as the conversion rate.
Example 1: Investing BTC in a BTC-USDT Dual Investment
Target Price: 60,000
Delivery Date: 1-Oct-2021
ROI: 0.6%
APR: 31.29%
Investment Currency: BTC
Assume that on September 24, BTC is priced at 48,000 USDT, and you choose to invest 1 BTC in a Dual Investment that matures in one week.
On 1-Oct-2021:
Scenario 1: If the settlement price of BTC is below the target price of 60,000 USDT, you will receive 0.6% in BTC: 1 × (1 + 0.6%) = 1.006 BTC.
Scenario 2: If the settlement price of BTC is above the target price of 60,000 USDT, you will receive 0.6% in USDT: 1 × 60,000 × (1 + 0.6%) = 60,360 USDT.
After expiry, your yield is fixed at 0.6%, but the payout currency (BTC or USDT) depends on the BTC/USDT settlement price.
Example 2: Investing USDT in a USDT-BTC Dual Investment
Target Price: 40,000
Delivery Date: 1-Oct-2021
ROI: 0.6%
APR: 31.29%
Investment Currency: USDT
Assume that on September 24, BTC is priced at 48,000 USDT, and you invest 40,000 USDT in a Dual Investment maturing in one week.
On 1-Oct-2021:
Scenario 1: If the settlement price of BTC is below the target price of 40,000 USDT, you will receive 0.6% in BTC: (40000/40000) * (1 + 0.6%) BTC = 1.1066 BTC.
Scenario 2: If the settlement price of BTC is above the target price of 40,000 USDT, you will receive 0.6% in USDT: 40,000 × (1 + 0.6%) = 40,240 USDT.
Again, the yield is fixed at 0.6%, but the settlement currency depends on the BTC/USDT price at expiry.
Dual Investment FAQ
Q： What is the purchase deadline for the dual investment？
A： Please complete the purchase before 15:00 (UTC+8) on the settlement day
Q： What’s the difference between Dual Investment and Covered Gain？
A： Covered Gain does not allow investments using stablecoins (e.g., USDT). Dual Investment supports purchases with both stablecoins and the target cryptocurrency.
Q： The minimum investment？
A： You can invest as little as 10 USDT. The minimum required amount for each asset will be shown when you attempt to purchase a specific Dual Investment product.
Q： Is there a transaction fee？
A： No. Dual Investment products have no transaction fees.
Q： Could dual investment redeem or withdraw before being settled？
A： Yes. You can use the Early Redemption function to redeem your principal before the settlement date.
Q： What’s the risk of dual investment?
A： The primary uncertainty is the settlement currency. This depends on whether the settlement price reaches the target price on the delivery date.
If investing in BTC: If the BTC price rises sharply, your BTC will be sold into USDT at the target price.
If investing in USDT: If the BTC price drops sharply, your USDT will be converted into BTC at the target price, even if the market price is lower.
Please get in touch with Pionex Support if you have any other questions.