Cryptocurrency Q&A What is the bitcoin basis trade?

What is the bitcoin basis trade?

Lorenzo Lorenzo Thu Nov 28 2024 | 5 answers 1356
I would like to understand the concept of Bitcoin basis trade. Could you explain what it is and how it works in the cryptocurrency market? What is the bitcoin basis trade?

5 answers

Tommaso Tommaso Sat Nov 30 2024
The BTC basis has the potential to experience sharp increases during periods of significant rallies in spot Bitcoin.

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CryptoEnthusiast CryptoEnthusiast Fri Nov 29 2024
By executing this trade, traders aim to capture the spread between the spot and futures prices.

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Giulia Giulia Fri Nov 29 2024
This phenomenon is similar to the behavior of funding rates in the cryptocurrency market.

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Eleonora Eleonora Fri Nov 29 2024
A delta-neutral strategy can be employed in this scenario, involving the purchase of spot Bitcoin using cash.

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Caterina Caterina Fri Nov 29 2024
Simultaneously, traders sell the front-month futures contract to offset the position.

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