Not talking about typical arbitrage where you check coin prices on different exchanges. This is about using an exchange that lets you do arbitrage betting on both spot and futures markets. You set a limit price for Bitcoin on the spot market and also a limit or market price on the futures side. You need equal amounts too, and the positions have to be opposite. Anyone tried this before? I'm struggling to grasp its significance.
I haven't touched this kind of trading yet, but I'm intrigued. Did some digging, and it seems like there are benefits for both spot and futures traders. They promise fixed and stable profits, which sounds appealing. Plus, it’s considered low-risk and low-volatility. You also don’t have to guess market direction, which is a big plus.
From what I gather, it's about buying 1 BTC at market price and then shorting that same BTC in the perpetual futures market. It’s like a simultaneous buy low/sell high trade. Haven't tried it yet though. Trading might need more funds than just what you plan to trade with. Got to have some cushion for losses when trying out new methods.
I've done both spot and futures trading, but this kind of arbitrage is new to me. Seems like the exchange is mostly interested in the fees. I’m not sold on mixing these types of trades. If it's spot, keep it spot. If it’s futures, stick to that. Don’t like the idea of mixing things up.
Honestly, I’m a bit of a newbie here. Just found out about platforms that do arbitrage between spot and futures. Can anyone share what platform they’re using? The usual arbitrage is about spotting price differences on exchanges, but this is a new angle for me. If it works, it could be pretty cool.
You're basically betting on the price difference to increase or decrease. Sell high and rebuy low if the spot is too low and the futures too high, or the other way around. Plus, it can be used for hedging and yield farming. This might help future prices align more closely with spot prices.
This is delta-neutral trading, right? You avoid exposure to BTC price changes but can still earn from funding rates and by shorting if futures are above spot. You can even lend or stake the spot asset to boost yields. There are various ways to set up a delta-neutral strategy, all about making money.
Makes sense considering futures prices often exceed spot prices. But from your explanation, profits seem tied to funding rates. If those are negative, you end up paying the longs as a short trader, right? If so, profits might be tiny, mainly relying on those rates.
Not really a fan of arbitrage trading, tbh. Seems like you just lock in small, low-risk profits by taking opposite positions. But real life complicates things. Fees, slippage, and timing can eat profits fast. What seems like easy money can quickly turn into stress.
Is this really arbitrage trading? Sounds more like hedging to me. Your explanation is kinda unclear. If you're buying BTC on the spot and shorting it on futures, that feels like hedging, not arbitrage. I’ve tried it and it’s not the magical loophole it seems. You can still lose money.
Haven't seen this platform before. For arbitrage, you usually need funds across multiple exchanges to buy low on one and sell high on another. This setup seems delta-neutral, buying on spot and shorting futures. I think it helps avoid the hassle of transferring coins between exchanges.
Since this isn’t cross-exchange arbitrage, it might have perks like faster reactions to price changes. Delta-neutral trading could be beneficial here. I’ve done it on various exchanges, and funding rates differ a lot. It’s not always a guaranteed win.
I wonder if the market's ready for this. We've seen innovations that weren't really necessary. Is this one of those? Seems like people have forgotten what real arbitrage is. Market makers have made traditional arbitrage tough, so mixing it with spot and futures might just be a beta test.