Campaign

How to Use Basis Trading with Crypto Futures to Hedge Volatility and Enhance Yield — Part 2 Welcome back to our comprehensive series on basis trading in crypto markets. In Part 1, we established the foundational concepts: what basis is, how it’s calculated, and why it matters for traders seeking market-neutral opportunities. Now that you understand basis as the difference between futures and spot prices, we’re ready to explore the practical mechanics of executing basis trades and how to leverage them strategically for both volatility hedging and yield enhancement. ...

How to Use Basis Trading with Crypto Futures to Hedge Volatility and Enhance Yield – Part 1 Basis trading is a fundamental strategy in crypto derivatives that allows traders and investors to hedge volatility while potentially enhancing yield by exploiting price differences between spot and futures markets. In this first part of our two-part series, we will explore the core concept of basis trading, its practical application in crypto markets, and walk through a detailed example to ground your understanding. This post builds on previous discussions around crypto derivatives and market mechanics, setting the stage for advanced strategies to come in Part 2. ...