Hedging at the junction of two worlds
Imagine this: Friday evening, you’re holding a large altcoin portfolio, and over the weekend important geopolitical news is expected. Traditional markets are closed until Monday.
If earlier you had to simply lock in crypto profits or just endure a drawdown, then now TradFi Perps (if they trade 24/7) allow you to balance risks.
Use case:
• Your portfolio: long on crypto (which often correlates with the Nasdaq index).
• Action: opening a short position on a futures contract for the traditional index over the weekend.
• Result: if the news triggers a broad market sell-off, the short’s profit will partially offset the losses on altcoins.
The flexibility of these instruments makes it possible to build protection regardless of Wall Street’s schedule.
#TradFi
Imagine this: Friday evening, you’re holding a large altcoin portfolio, and over the weekend important geopolitical news is expected. Traditional markets are closed until Monday.
If earlier you had to simply lock in crypto profits or just endure a drawdown, then now TradFi Perps (if they trade 24/7) allow you to balance risks.
Use case:
• Your portfolio: long on crypto (which often correlates with the Nasdaq index).
• Action: opening a short position on a futures contract for the traditional index over the weekend.
• Result: if the news triggers a broad market sell-off, the short’s profit will partially offset the losses on altcoins.
The flexibility of these instruments makes it possible to build protection regardless of Wall Street’s schedule.
#TradFi