Cross-currency hedging arbitrage risk

Those interested in hedging arbitrage can join the group, where there are不定时 red packets

Four sources of risk

1. When selecting coins to form an arbitrage pair, not following the principle of similar trend movements, which is the biggest risk, possibly leading to opposite movements on both sides.

2. Position management: even with hedging, positions should not be too large; overly heavy positions also carry the risk of liquidation.

3. When the arbitrage pair shows abnormal behavior, not monitoring the market and not taking stop-loss or closing positions.

4. Extreme imbalance in the value of positions on both sides of the arbitrage pair. #BTC $ETH