Are your position legs really balanced? ⚖️
Leg size is simply the position amount in one of your two coins.
🔹 If your legs are unbalanced, your pair stays dependent on general market movement.
🔹 Coins move with different strengths, so equal amounts are just a starting point, not a complete solution.
🔹 Prices change and balance drifts over time, so you must check it regularly, not just at entry.
🔹 High leverage amplifies any balance mistake and brings liquidation closer.
Example: You take a Long of $1000 in Coin A and a Short of $400 in Coin B. If both rise 10% (+100 and -40), you are left with +60 from market growth. This means the position was not market-neutral.
⚠️ Common mistake: Choosing leg sizes "by eye" and assuming the pair is neutral.
How would you check the balance of the legs after price movements?
#Futures #CryptoTrading #CryptoEducation #RiskManagement
Leg size is simply the position amount in one of your two coins.
🔹 If your legs are unbalanced, your pair stays dependent on general market movement.
🔹 Coins move with different strengths, so equal amounts are just a starting point, not a complete solution.
🔹 Prices change and balance drifts over time, so you must check it regularly, not just at entry.
🔹 High leverage amplifies any balance mistake and brings liquidation closer.
Example: You take a Long of $1000 in Coin A and a Short of $400 in Coin B. If both rise 10% (+100 and -40), you are left with +60 from market growth. This means the position was not market-neutral.
⚠️ Common mistake: Choosing leg sizes "by eye" and assuming the pair is neutral.
How would you check the balance of the legs after price movements?
#Futures #CryptoTrading #CryptoEducation #RiskManagement