Ever heard of pair trading in crypto futures? 📊
🔹 Pair trading means opening a long (betting on growth) on one coin and a short (betting on a drop) on another historically linked coin at the same time.
🔹 Profit comes from the changing difference between the two coins, not from general market direction.
🔹 It is also called statistical arbitrage because it relies on statistical connection rather than opinions about future prices.
💡 Example: The market rises. Coin A goes up 3%, Coin B goes up 1%. Long A gives +3%, Short B gives -1%. Result: +2% relative to one leg's size, before fees.
⚠️ Common mistake: Treating the pair as two separate trades, when the result depends only on the difference between both legs.
Have you tried trading a pair instead of a single coin? What confused you?
#Futures #CryptoTrading #CryptoEducation #RiskManagement
🔹 Pair trading means opening a long (betting on growth) on one coin and a short (betting on a drop) on another historically linked coin at the same time.
🔹 Profit comes from the changing difference between the two coins, not from general market direction.
🔹 It is also called statistical arbitrage because it relies on statistical connection rather than opinions about future prices.
💡 Example: The market rises. Coin A goes up 3%, Coin B goes up 1%. Long A gives +3%, Short B gives -1%. Result: +2% relative to one leg's size, before fees.
⚠️ Common mistake: Treating the pair as two separate trades, when the result depends only on the difference between both legs.
Have you tried trading a pair instead of a single coin? What confused you?
#Futures #CryptoTrading #CryptoEducation #RiskManagement