This article explores hedging in cryptocurrency markets, explaining how traders use derivative markets to execute opposing trades that minimize price volatility risk. Through examples like the Luna crash, we examine key hedging tools including futures, options, and perpetual contracts. The article details both benefits—such as reduced risk exposure and profit protection—and drawbacks like fees and limited returns, offering a comprehensive guide to risk management in crypto trading.
2025-02-10 10:02:36
This article offers an in-depth introduction to spot and contract trading in the cryptocurrency market. It explains core terms such as leverage, opening and closing positions, and margin, while analyzing the differences and causes of liquidation and negative balance. Using practical examples, it helps readers understand the operational logic of contract trading and effective strategies to avoid negative balance, providing risk management advice for cryptocurrency investors.
2025-02-05 07:06:12
This article explores the relationship between Bitcoin spot and futures prices, highlighting key differences and reasons for price discrepancies. It also analyzes investment behaviors and key indicators, using examples to provide readers with a deeper understanding of market dynamics and investment strategies.
2025-01-29 11:06:35
This article explores the evolution and significance of the funding rate in cryptocurrency derivatives markets, with an emphasis on its origins, mechanisms, and the arbitrage strategies it inspires. It highlights the "Golden Age" of funding rate arbitrage in Spring 2021, the subsequent decline due to market corrections, and the rebirth of these opportunities in 2024-2025 with the advent of innovative stablecoins like USDe and USDX.
2024-12-25 02:36:30
This article explains the concept of arbitrage in the cryptocurrency perpetual contract market, focusing on the "cash and carry trade" strategy, which allows traders to profit from discrepancies between spot and futures prices. By using perpetual contracts and spot positions simultaneously, traders can earn passive income through funding rates.
2024-12-06 12:55:06
Perpetual contracts are an essential derivative in the DeFi sector. Due to the lack of a fixed expiration date, these contracts have become a favorite among traders. This article provides an in-depth look at how perpetual contracts work, the operational framework of decentralized perpetual contract platforms, and the role of liquidity providers.
2024-11-07 09:47:45
This article will explain how to use Gate.com's trading bots and API features to implement quantitative trading strategies, helping users automate their trades and take advantage of opportunities in the crypto market.
2024-10-21 11:23:37
DEXs let users retain custody of their funds, allow the community to participate and foster open innovation. However, these benefits have historically come at a cost of higher latency and lower liquidity due to the throughput and latency limitations of underlying blockchains.
2024-09-18 17:51:52
The funding rate is a key element in cryptocurrency perpetual contract trading, influenced by the market. This rate, which reflects the balance between long and short positions, can vary significantly with market movements. A high positive funding rate increases the cost for long positions, while a negative rate raises costs for short positions. These fluctuations can impact trading costs, market volatility, and overall strategy. Traders must monitor the funding rate closely and adjust their strategies accordingly to optimize costs and minimize risks.
2024-08-26 07:18:40
This article introduces ZKX, an emerging project in the Perp DEX space, covering its background, objectives, and strategies. Facing a competitive market environment, ZKX offers high performance and seamless user experience through its Dapp Rollup/App Chain+CLOB order book infrastructure, attracting a large user base to the on-chain perpetual contracts ecosystem through multiple airdrop incentives and a socially gamified trading model.
2024-07-02 05:03:24
This article introduces the innovative impact of EIP-3074 on EOA. By allowing EOA to transfer control to the Invoker contract, it gains the same multi-functional operation capabilities as the contract. This not only significantly improves the user experience, but also reshapes the existing authorization method to make it more secure without changing the user experience.
2024-06-12 01:42:22
LogX is a perpetual contract trading aggregator, helping investors find the optimal trading platform from multiple underlying contract trading protocols.
2024-03-26 01:01:35
This article starts with the issue of DA and data withholding, and explores the reasons why Plasma has been buried for so long.
2024-01-06 07:08:27
1.This “Gate Learn Futures” Intermediate course introduces concepts and the use of various technical indicators, including Candlestick charts, technical patterns, moving averages and trend lines.
2.Learn about trend-related concepts. We elaborate on the classification of short-term, medium-term, and long-term trends, and the relationship between trends and transactions.
2023-04-06 10:34:47
This “Gate Learn Futures” Intermediate course introduces concepts and the use of various technical indicators, including Candlestick charts, technical patterns, moving averages, and trend lines.
This article expands on the application skills of moving averages arranged in various patterns, including bonding, converging, and diverging. We will concentrate on definitions, pattern recognition, implications, and practical application of these three MA patterns.
2023-02-21 16:57:02