Covered Gain
Covered Gain
Covered gain is a strategy within Dual Investment that allows you to earn yield while waiting to sell your crypto at a higher target price.
What it is
When you use covered gain:
You select a target price above the current market price.
If the target price is reached on the settlement date, your crypto (and the interest earned) is sold at that price.
If the target price is not reached, your crypto is not sold, but you still keep the interest earned.
This strategy is useful if you're willing to sell your assets — but only if the price is right.
Why use covered gain?
It's especially useful for traders or investors who:
Are not in a rush to sell
Want to earn additional return during market consolidation
Have a clear target price in mind
What happens on the settlement date?
If the market price > target price:
Your crypto is sold at the target price.
The order is closed, even if auto reinvest is enabled.
If the market price ≤ target price:
Your crypto is not sold.
If auto reinvest is enabled, Loopring will attempt to subscribe you into a new product with the same terms.
Additional notes
💡 Covered gain only applies to sell-side Dual Investment products. For buy-side products, the strategy and logic differ slightly.
You can disable auto reinvest at any time if you no longer want to remain in the position.
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