In hummingbot, we will be market makers. Why market makers build strategies that adjust spreads? for several key reasons: 1. To Manage Risk: Increased Volatility = Increased Risk: When markets are volatile, prices fluctuate rapidly and unpredictably. Wider spreads help market makers compensate for the increased risk of adverse price movements that could lead to losses. Protect Against Slippage: Volatility can cause significant slippage, meaning the price at which an order is executed may differ from the expected price. Wider spreads provide a buffer against slippage, ensuring the market maker still captures profit despite price fluctuations.
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What is a Cash and Carry Strategy? A cash and carry strategy is an arbitrage strategy used in financial markets to take advantage of pricing inefficiencies between an asset's spot price and its futures price. This strategy, also known as basis trading, involves buying the underlying asset in the spot market at the current price and simultaneously selling a futures contract for the same asset at a higher price. The trader then holds the asset until the futures contract expires, at which point the prices converge, and the trader profits from the difference. To learn more, read here https://www.investopedia.com/terms/c/cash-and-carry-arbitrage.asp
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Estrategia de Cash and Carry con futuros perpetuos, ejemplo de Ethereum (ETH-PERP). La estrategia busca aprovechar las diferencias en las tasas de financiamiento entre plataformas de intercambio. Esto se logra comprando ejemplo ETH-PERP en una plataforma con tasas de financiamiento bajas y vendiéndolo en otra con tasas más altas, obteniendo ganancias de la diferencia. Esta estrategia se automatiza mediante algoritmos que monitorean constantemente las tasas de financiamiento en múltiples plataformas, identifican oportunidades rentables y ejecutan operaciones de forma rápida y precisa. Esto permite a los traders aprovechar las ineficiencias del mercado y generar ganancias consistentes con un riesgo relativamente bajo.
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