#加密ETF申请热潮涌现
👋 Hello, friends in the crypto circle! Today, I am here to share some professional insights on contract arbitrage, allowing you to skillfully manage your funds amidst the waves of the crypto market and achieve stable profits!
💡 Spot and Contract Hedging: The Secret to Managing Large Funds
In the daily funding fee payments of perpetual contracts, there are numerous arbitrage opportunities hidden. The operation method is not complicated; the key lies in choosing the right exchange. We need to pay attention to two different exchanges and carefully compare their funding fees. Once we find one exchange with a higher funding fee, we open a short position there; meanwhile, we open a long position on the other exchange where the funding fee is lower. At the same time, make sure that the prices, margins, and multiples on both sides are set consistently. Through this clever hedging operation, the funding fee can be easily secured. A special reminder here: a multiple of 5 - 10 times is most suitable. If the multiple is too high, the risk of liquidation will increase exponentially; if the multiple is too low, not only will the profits be meager, but frequent adjustments will incur high transaction fees, which is not worth it.
💡 Leveraged Contract Arbitrage: A Tool to Enhance Fund Utilization
If you have 10,000 USDT on hand and want to enhance the effectiveness of this fund, consider leveraged contract arbitrage. Currently, some exchanges have borrowing fees as low as 0.02% per day, which is quite cost-effective. Based on this, seek out trading pairs where the total daily contract funding fees are not less than 0.03%, and stable arbitrage opportunities will emerge. However, as more and more people discover this approach, market competition has intensified, and opportunities with high funding fees are becoming increasingly scarce. One recent practical case I executed involved using 10,000 USDT to buy 1 BTC with leverage on the Gate exchange, while simultaneously opening a short position of 1,000 BTC/USDT on the Bigone exchange, achieving daily funding fees of 0.1% - 0.2%, which is quite substantial. Finding cryptocurrencies with high funding fees requires some skills, and some specialized software can assist you. I once stumbled upon a treasure cryptocurrency with a funding fee as high as 6%, which was simply astonishing in terms of profit potential!
⚠️ Risk Prevention: Strategies to Handle Slippage and Losses
Although there are many arbitrage opportunities, the crypto market is ever-changing, and risks are always present. First, there's the issue of slippage, which often causes headaches. It is crucial to ensure that the buy and sell prices on both sides match precisely. Generally, using limit orders can effectively avoid most slippage risks, unless encountering extreme market conditions with significant fluctuations, there should not be any mishaps. If operations are executed properly, buying at a low price with leverage and shorting at a high contract price can also yield a nice profit. Additionally, in the leveraged selling phase, cleverly setting the order price slightly above the contract's stop-loss price can significantly reduce the probability of slippage.
Now let's talk about the risk of losses, which is of utmost importance. Under normal circumstances, as long as the price rises as expected, we sell at the preset price, which can basically guarantee profit. However, the crypto market is as changeable as the weather in June. If the price suddenly drops significantly without warning, and the leveraged position hits the liquidation price, the contract may be forcibly liquidated, leading to potential losses. Therefore, in such situations, one must be quick and decisive. When noticing signs of a significant market pullback, it is crucial to close out positions in advance, as preserving principal is paramount, and safety comes first!
📣 Want to delve deeper into more professional knowledge in the crypto circle, access cutting-edge information, and learn contract trading skills for free, along with daily precise price points? Then quickly click on my profile and follow me! Let's ride the waves in the crypto world together, advancing steadily 🚀.
$BTC
