Hedge arbitrage strategies are extremely niche, and people in the circle are extremely reluctant to share them. Today, the team leader will be scolded by people in the hedge arbitrage circle because too many people know about it and there is not enough cake to go around!

The cryptocurrency world is a world with extremely severe polarization

One type is the contract messenger who is looking forward to a comeback.

One type is real investors who want to maintain and increase the value of their assets.

The view on rate of return is completely different from that of the other group of people. They expect a turnaround and hope for a 100-fold return in one market trend, while real investors require an annualized return of over 30% to surpass Buffett.

But what ordinary people usually hear and see are legendary stories. The one in a million probability makes you full of expectations and believe that it will happen to you.

Two kinds of thinking, two kinds of results

Today, the captain mainly analyzes a method of stable investment income in the cryptocurrency circle. It is suitable for investment thinkers who can accept low returns and low risk-return ratios.

After the polite words, let’s talk about the real stuff:

Methods and profit principles of funding rate arbitrage: Yesterday, the captain carefully analyzed why there is a funding rate? The role and reasons of the rate (click to follow and enter the homepage to view the original text). The article mentioned that there will be price differences between spot and contracts on the same platform. The spot and spot price differences across platforms also exist, and the spot and contract price differences across platforms are even greater. The law of price influence is that large platforms affect small platforms, and the prices of small platforms will be closer to large platforms (the core parameter is that platforms with large transaction volumes have small influences). The rules of funding rates are determined by the exchange. Different platform rules have different funding rates. For example, Binance usually settles funding fees every 8 hours, but bybit, Ok will temporarily introduce a funding rate settlement standard every 4 hours when the price fluctuation is large and the spot and contract price differences are large. Now that there are trading pairs, the trading method is very simple, because the settlement of the funding rate does not require a holding time, and only requires you to have a position at the settlement time. At this time, open long and short positions on different platforms to hedge the risk of the contract's rise and fall. When the funding rate settlement time arrives, the profit is pocketed, and the position is closed at the same time, waiting for the next funding rate settlement time to arrive, and repeat the operation. The only thing to pay attention to is whether it is a positive funding fee. Negative funding is a pure loss! ! ! The best case in the captain circle is the crazy TRB in September and October last year. The funding rate is 3% every 4 hours. 24% profit a day, lasting for three or four days. At that time, the highest price of Binance was 629, and the OK price was 738. Interested friends can go and see the K line. One of my teammates made 400,000 dollars by hand, which is so exciting!

I'm giving a reward to the brothers who followed the captain yesterday. I'm sharing a method in the hedging arbitrage strategy: period-by-period hedging arbitrage to earn funding rates. I'm typing during the National Day break. If the number of followers exceeds 50 today, I'll share another hedging arbitrage strategy for futures and spot in the hedging arbitrage strategy tomorrow.

Read it carefully for more than two times to enhance your understanding. If you just glance over it, it means you have no chance to become the captain.

If you understand, please follow us. Follow the captain to regularly share information about funding rates.