Basis Trading (Trading Perpetuals & Spot)
Position Setup:
Buy 1 ETH in the spot market for $2,500 on Uniswap.
Short 1 ETH in the ETH/USDT perpetual contract at $2,550.
Market Movement:
ETH price converges to $2,500 in both the spot and perpetual markets.
Using the Greeks Dashboard:
Delta Neutrality: As this strategy relies on maintaining a delta-neutral position (neutralizing exposure to price movements), the Greeks Dashboard will show you the current delta of your combined positions. A near-zero delta indicates the strategy is working as planned.
Gamma Monitoring: In periods of volatility, gamma can show you how sensitive your delta is to price changes, helping you determine if adjustments are needed to maintain neutrality.
Net Position: You earn $50 from the basis trading strategy while keeping delta-neutral using real-time insights from the Greeks Dashboard.
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