BTCUP and BTCDOWN are both BTC-based leveraged tokens. BTCUP can be 1-3 times more profitable than BTC when BTC is up; BTCDOWN can be 1-3 times more profitable than BTC when BTC is down. Because BTC-based declines, the declines of the two varieties are basically opposite, only the multiples change at any time, so the gains and losses are not the same. Is it possible to hedge with BTCUP and BTCDOWN, or split-grid hedging, where the gap between the two is pulled up to a certain proportion, and open a hedge again? Can you help me analyze the risks?
The grassThe volume of transactions is not large, and there is no simple way to do nothing.
uucc123In the meantime, buy BTCUP and buy BTCDOWN, which should be the same as doing more and doing less. If the price gap is too large, there is a risk of a boom if the contract is over-hedged. I think if you use both of these hedges, you shouldn't risk a crash, because it's a spot trade.