Die Händler können kein Risiko mehr aufs Buch nehmen, die Future-Cash Bond #basistrades kriegen Margin Calls und müssen liquidieren. Gleichzeitig wird gemunkelt, dass China als Retaliation auch USTs verkauft.

Sieht nach einem Perfect Storm für die US #Zinsmärkte aus.

Here we go again, time for some #Education.

Previously, we discussed #BasisTrades, where you short the #Perp (perpetual future) and buy the #Spot asset when funding rates are positive. Now, let's explore the #InvertedBasisTrade — a similar concept but flipped! It's another way to earn from #FundingRates. 📚

In an #InvertedBasisTrade, you act when #FundingRates are negative, meaning short positions pay long positions. Here's how it works:

The benefits include:

✅ Earning Funding Rates: Your short futures position earns you regular payments due to positive funding rates.
✅ Risk Mitigation: Buying the spot asset offsets potential losses from price moves, keeping your overall position balanced.

#BasisTrades let you capitalize on #FundingRates without speculating on price direction. It's all about earning steady returns while effectively managing risk. A valuable strategy for traders seeking stability in a volatile market! 🚀

Its THAT time of the day again. #Education, yay! Last couple of days we covered all the very basics and now its time to actually talk shop. Lets talk about #BasisTrades in #Crypto.

When funding rates are positive, short position holders get paid by longs. This opens up a chance to earn funding payments while staying neutral on the asset's price movements—no need to predict where prices go! ⚖️