Holding a million U, still staring at the 14% interest on USDT? The hedging strategy privately kept by veteran players in the crypto circle,
Can the annualized 120% hedging arbitrage really guarantee profits without losses?
It can maximize the utilization of funds!
Core gameplay: double insurance hedging arbitrage
Position building operation, fully buying 1 million U worth of BTC/ETH and other mainstream coins, while simultaneously opening a 1x reverse short position in the contract account to achieve a perfect hedging of 'spot long + contract short'.
The 'position reward' (similar to funding fees) for coin-based contracts is settled hourly,
The greater the market volatility, the higher the subsidy; fee rebates: platform rebates stacked, with annualized returns directly reaching 120%!
The 'free mode' with zero liquidation risk automatically offsets profits and losses between spot and short regardless of whether the coin price rises or falls:
Coin price surges → spot profits, short losses, perfectly balanced; coin price plummets → short profits immensely, spot goes to zero, ultimately no profit or loss but even gains from subsidies!
These three red lines must not be crossed!
Selection of coin types is a minefield; must choose coins like BTC, ETH, etc., with daily trading volumes exceeding 1 billion USD!
Low market cap altcoins can consume 30% of the principal due to slippage, and fees are often higher than the subsidies.
Contract rule blind spots: different platforms have significant differences in calculating funding fees, be sure to confirm the subsidy mechanism in advance.
In the event of a black swan causing a spike, hedging may temporarily become ineffective; it is recommended to reserve 20% of funds to cope with extreme volatility.
The essence of this gameplay is 'trading market volatility for returns'; high returns are always accompanied by hidden risks. Before entering with a million in funds, thoroughly study the platform rules — after all, in the crypto circle, those who understand the rules can smile while reaping the rewards!
