Those who want to learn about arbitrage hedging can join the group, where there are random red packets 🧧 (hh7777)
币安对冲套利交易群
The four essential conditions for hedging arbitrage
1. Opposite directions—one long and one short
2. Both sides should have equal value, for example, both opened with 1000U
3. Open and close positions simultaneously
4. The selected assets in the hedging pair should generally move in the same direction; the core is that they rise and fall together, but with different magnitudes.
Profit principle of hedging arbitrage:
Normally, the arbitrage pairs rise and fall together but with different magnitudes, creating a price difference that allows for profit. For example, go long on ETH with 100U and short on SOL with 100U. Both positions are opened at the same time. After one hour, ETH rises by 5%, and SOL rises by 3%. Then both positions are closed simultaneously. One gains while the other loses, effectively earning a 2% profit.