FTX tokens are built by the traders for the traders.  FTX cryptocurrency derivatives exchange provides futures, leveraged tokens, and OTC trading.

For clarity, leveraged tokens are ERC20 tokens that have leveraged exposure and there is no need to take care of margin requirements, management, and liquidation risk.  Reportedly, leveraged tokens are the easiest way to do leverage trading. They maintain fixed or variable leverage.

FTX being leveraged tokens are the ERC-20 tokens issued on the Ethereum blockchain. It is possible to buy, store, and transfer them like any other tokens; however, the advantage comes because of the leveraged exposure to the underlying asset.

FTX exchange offers wide range of leveraged tokens like SXPBULL/USD; XRPBULL/USD; BULL/USD; BULL/USDT; ETHBULL/USD; and the list is exhaustive.

Managing a leveraged position is less of a worry as there is no need to worry about the risk of liquidation.  There is also no need to manage a collateral or a need to maintain margin requirements.  However, there used to be lot of controversial opinions about FTX tokens citing they might not perform well on a longer-term basis.

As the leveraged tokens are on a blockchain, they provide functionality, which is similar to other tokens.  Their function is a lot like other tokens.  Therefore, it is possible to buy, store, and transfer them like other tokens. The point is that FTX leverage tokens will lose significant value in a sideways zig-zag market and therefore considered not ideal for long-term holding.

Investors should understand the mechanism of the financial risk, which is inherent with leverage tokens.   It is important to know how it works:  For clarity, someone sends 100 USD to the FTX exchange to have ETH/USD worth 100 USD issued.  ETH/USD has 3x long exposure to ETH.  Thus the account that represents ETH leverage tokens for a 300 USD position on the ETH/USD will be opened in the perpetual futures market on FTX.  This 300 USD position takes care of the 100 USD worth leverage token. When the user wants to redeem the 300 USD position, the position will be closed in the perpetual futures market on FTX and 100 USD will be returned back.  This kind of issuance and redemption process sustains the price which the FTX leveraged tokens were intended to sustain.

Leverage tokens do not have a due date.  Therefore, the trading experience with this token is considered to be user friendly.  The experience is same like the spot market.  For clarity, spot markets are where financial instruments like commodities, currencies, and securities get traded for immediate delivery.