加密锁魂
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If you earn 1 million in the cryptocurrency market, would you put it in USDT to earn interest at an annualized rate?
Currently, Binance's USDT savings annual rate is about 15%. Here's a method for managing funds in the cryptocurrency market with large capital: buy one cryptocurrency with the entire 1 million and transfer it to a contract to open a margin short position with a leverage of one. Based on the current transaction fees, you can obtain an arbitrage contract with an annual interest rate of 120% that will never be liquidated. Many people don't understand this, so I specifically wrote this for everyone to reference.
Funding Rate
The mechanism primarily created for perpetual contracts, through which long and short positions pay fees to each other to balance the supply and demand of longs and shorts, ensuring that the price of perpetual contracts can continuously correspond to the spot price of the underlying asset.
Calculation Method of Funding Rate
I personally think it's important to understand how often the settlement occurs and the proportion of positions that are charged.
Rate (F) = Average Premium Index (P)* + Clamp (Interest Rate (I) - Premium Index (P)*, 0.05% to -0.05%)
Next, let's discuss how to achieve a hedging effect with a one-time margin short position in a cryptocurrency-based contract.
Case 1
For the case of a one-time margin short position in a BTC-based contract: one contract has a face value of 100.
I buy 100 contracts; at this time, BTC is 50,000.
Originally, I held 0.2 BTC.
Later, the price of BTC dropped to 40,000.
100 * 100 (1/40,000 - 1/50,000) = 0.05.
So, you actually earned 0.05 BTC.
Finally, the number of BTC held is 0.2 + 0.05 = 0.25 BTC.
Using the closing price of BTC/USDT at that time, the value you obtained in USDT is:
0.25 * 40,000 = 10,000.
Let’s take another example of a one-time margin short position in a BTC-based contract:
One contract has a face value of 100.
I buy 100 contracts; at this time, BTC is 50,000.
Originally, I held 0.2 BTC.
Later, the price of BTC rose to 60,000.
100 * 100 (1/50,000 - 1/60,000) = 0.0333333.
So, you actually lost 0.0333333 BTC.
Finally, the number of BTC held is 0.2 - 0.0333333 = 0.16666667 BTC.
Using the closing price of BTC/USDT at that time, the value you obtained in USDT is:
0.16666667 * 60,000 = 10,000.
The conclusion is that whether the price of BTC rises or falls, the value you hold (valued in USDT) remains unchanged.
Thus, shorting in a cryptocurrency-based contract has the following advantages:
No liquidation (with one-time margin)
During the price fluctuations, the value of U remains nearly constant.
At the same time, you can earn funding fees (when you short a cryptocurrency-based contract, if the funding rate is positive, the longs will pay you the fees)
#美联储3月利率决议 #你看好哪一个山寨币ETF将通过？
Currently, Binance's USDT savings annual rate is about 15%. Here's a method for managing funds in the cryptocurrency market with large capital: buy one cryptocurrency with the entire 1 million and transfer it to a contract to open a margin short position with a leverage of one. Based on the current transaction fees, you can obtain an arbitrage contract with an annual interest rate of 120% that will never be liquidated. Many people don't understand this, so I specifically wrote this for everyone to reference.
Funding Rate
The mechanism primarily created for perpetual contracts, through which long and short positions pay fees to each other to balance the supply and demand of longs and shorts, ensuring that the price of perpetual contracts can continuously correspond to the spot price of the underlying asset.
Calculation Method of Funding Rate
I personally think it's important to understand how often the settlement occurs and the proportion of positions that are charged.
Rate (F) = Average Premium Index (P)* + Clamp (Interest Rate (I) - Premium Index (P)*, 0.05% to -0.05%)
Next, let's discuss how to achieve a hedging effect with a one-time margin short position in a cryptocurrency-based contract.
Case 1
For the case of a one-time margin short position in a BTC-based contract: one contract has a face value of 100.
I buy 100 contracts; at this time, BTC is 50,000.
Originally, I held 0.2 BTC.
Later, the price of BTC dropped to 40,000.
100 * 100 (1/40,000 - 1/50,000) = 0.05.
So, you actually earned 0.05 BTC.
Finally, the number of BTC held is 0.2 + 0.05 = 0.25 BTC.
Using the closing price of BTC/USDT at that time, the value you obtained in USDT is:
0.25 * 40,000 = 10,000.
Let’s take another example of a one-time margin short position in a BTC-based contract:
One contract has a face value of 100.
I buy 100 contracts; at this time, BTC is 50,000.
Originally, I held 0.2 BTC.
Later, the price of BTC rose to 60,000.
100 * 100 (1/50,000 - 1/60,000) = 0.0333333.
So, you actually lost 0.0333333 BTC.
Finally, the number of BTC held is 0.2 - 0.0333333 = 0.16666667 BTC.
Using the closing price of BTC/USDT at that time, the value you obtained in USDT is:
0.16666667 * 60,000 = 10,000.
The conclusion is that whether the price of BTC rises or falls, the value you hold (valued in USDT) remains unchanged.
Thus, shorting in a cryptocurrency-based contract has the following advantages:
No liquidation (with one-time margin)
During the price fluctuations, the value of U remains nearly constant.
At the same time, you can earn funding fees (when you short a cryptocurrency-based contract, if the funding rate is positive, the longs will pay you the fees)
#美联储3月利率决议 #你看好哪一个山寨币ETF将通过？
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
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