Ok guys, i haven't been writing for a while but I figured a very nice Bitmex trick. This helped me making the killing trade below.
I'll go with an example.
Current Index price: 5500
Current swap price: 5000
I'll go with an example.
Current Index price: 5500
Current swap price: 5000
If you go 100x long, your liq will be 4975. But it will be based on index so price needs to dump 10% to liq you, while you risk 1%.
So if it goes down 10%, you loose 1%. If it goes up 10%, you make 10%.
So if it goes down 10%, you loose 1%. If it goes up 10%, you make 10%.
Yes, the trend is down but with this risk/reward you can just shoot a long on a nice dip and have a great risk/reward. This is how I managed to do my trade - I went 100x long at 3700 , while swaps went go 3600 .
Normally I would have been liqed but I knew I wouldn't be cuz of large index difference.
This is still possible to repeat until difference between index and swaps settles.
Who looses money by gifting this great r/r for you? The infamous insurance fund.
This is still possible to repeat until difference between index and swaps settles.
Who looses money by gifting this great r/r for you? The infamous insurance fund.
Even if you went long rn&it liqs your long; assuming the spread still exists, you just re-long and it needs another $500 (or whatever the spread is) to go against you to kill another 1% while if it moves back of the originally lost $500 you make 10x of what you lost on the liq
