Just like the #BasisTrade but in reverse, the #InvertedBasisTrade lets you capitalize on funding rates without betting on price direction.
Just like the #BasisTrade but in reverse, the #InvertedBasisTrade lets you capitalize on funding rates without betting on price direction.
In an #InvertedBasisTrade, you act when #FundingRates are negative, meaning short positions pay long positions. Here's how it works:
In an #InvertedBasisTrade, you act when #FundingRates are negative, meaning short positions pay long positions. Here's how it works:
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!
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!