Show threadcopa.digitalDec 5, 2024

✅ Risk Mitigation: Shorting the spot asset offsets potential losses from price changes, keeping your position balanced.

Just like the #BasisTrade but in reverse, the #InvertedBasisTrade lets you capitalize on funding rates without betting on price direction. It's another strategy for traders aiming for steady returns while managing risk effectively! 🚀

copa.digitalDec 5, 2024

Here we go again, time for some #Education.

Previously, we discussed #BasisTrades, where you short the #Perp (perpetual future) and buy the #Spot asset when funding rates are positive. Now, let's explore the #InvertedBasisTrade — a similar concept but flipped! It's another way to earn from #FundingRates. 📚

In an #InvertedBasisTrade, you act when #FundingRates are negative, meaning short positions pay long positions. Here's how it works: