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29 November 2020

Bull or bear? Pros don’t care! Here’s 3 strategies every trader should know

Bull or bear? Pros don’t care! Here’s 3 strategies every trader should know


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Today we will discuss how the futures carry trade, funding rate, and use of trailing stops are used by top traders.

One great strategy called the carry trade consists of buying a cryptocurrency on traditional markets and selling its fixed-month calendar futures.

This rate can be measured by analyzing the basis indicator, a metric also referred to as the futures markets annualized premium.

This trade will only work if the cryptocurrency deposited as margin is the same one being shorted via futures.

Other non-directional trades include options strategies which usually involve multiple expiries and futures contracts.

One example, which is less risky is to exploit and trade the funding rate.

When this rate goes up, professional traders will short futures contracts and simultaneously buy it on spot exchanges.

Once Bitcoin reaches that level, it will only buy after a 0.8% bounce (callback rate).

Practice and master those three strategies: futures carry trade, profiting from the funding rate, and buying using trailing stops.

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cointelegraph.com
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