If you want to learn about hedging arbitrage, you can join the group, where there are random red envelopes 🧧
7 major advantages of hedging arbitrage
Advantage 1. It essentially will not lead to liquidation because equal positions are opened on both long and short sides.
Advantage 2. When the market is extremely fast or the direction of arbitrage is incorrect, you have enough time to operate because the directions are opposite, resulting in profit and loss.
Advantage 3. Emotional stability is a big advantage, with low risk and high stability, it basically does not let traders get too excited, as there won't be huge profits or losses in just a few minutes; the profit and loss process is smooth and slow.
Advantage 4. Reduces transaction fees, with significantly fewer stop losses compared to a one-sided position. Holding the arbitrage position for a longer time can actually lower transaction fees.
Advantage 5. Very good control over drawdowns, as long as the price difference remains unchanged, both will rise and fall together.
Advantage 6. Better judgment of direction, you only need to judge the strength of the arbitrage group, which is easier than one-sided judgment.
Advantage 7. There are opportunities to open positions regardless of whether the market rises or falls, as long as the price difference is appropriate, it is an opportunity. #DOGE $BTC
Was this time a successful bottom fishing?