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.

There are two types of people with different views on the rate of return. Those who expect a direct turnaround expect to get 100 times the return in one wave of market, while real investors require an annualized return of more than 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.

Now that the polite words are over, let’s get down to business.

The literal meaning of "spot short and futures long" is: short spot and long contract to form a trading pair. There are two prerequisites. The first is that the spread can guarantee the transaction cost, and the second is that the spot short must be able to borrow the currency in advance. (Explanation of spot short: Most people don't know how to open a short position in the spot market. Borrowing currency means that the platform lends out the currency in its hands as a bargaining chip. The interest generated is a kind of income for the platform. The number of small currencies released is limited, and it is not available for borrowing at any time. The principle of profit from spot shorting is to use U as collateral. The platform lends you the currency at the current price, and you have currency to borrow and sell. If the currency falls, profit is generated, because when repaying the currency, the currency is borrowed and repaid according to the currency after the fall. The collateralized U assets can buy more currency, and repaying the borrowed currency is the profit part)

Shorting spot and long contracts form a trading pair. There are three profit points. The first is the profit from the spread, the second is the funding fee generated by the contract, and the third is the rebate of transaction fees.

But this strategy is much more difficult than the funding rate arbitrage mentioned in the last two issues, and you must use API quantitative tools to complete the order, which requires a very high degree of accuracy. The price difference fluctuates in a short period of time, and the manual speed cannot complete the accurate data matching. So today, teammates can only learn this theoretical knowledge! Most of the captain's assets are placed in hedging arbitrage in the U standard, because hedging arbitrage has 0 retracement, no price difference, and no positive funding fee, so no position will be opened.

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