ALL ABOARD!

  • The number of quarters where futures overperformed was 8. This overperformance totaled 47.58%.
  • The number of quarters where futures underperformed was 9. This underperformance totaled 58.21%.
  • In total, the floating rate overperformed by 10.63%. That means that an investor long NakaDollar Floating Rate bonds would overperform and investor long NakaDollar Fixed Rate Bonds.
  • Sell USD that you own or borrowed
  • Buy BTC for immediate delivery, aka on a spot basis
  • Deposit BTC on BitMEX or another derivatives trading platform
  • Sell a BTC/USD inverse futures contract
  • It’s January 1, 2021
  • BTC/USD = $100
  • The BitMEX BTC/USD 31 December 2021 Futures Contract (XBTZ21) = $150
  • Each XBTZ21 is worth $1 of BTC at any price
  • Days to Maturity = 365
  • Day count Convention = Actual / 365
  • Sell USD that we own or borrowed
  • Buy BTC for immediate delivery, aka on a spot basis
  • Deposit BTC on BitMEX or another derivatives trading platform
  • Sell a BTC/USD inverse perpetual swap contract
  • It’s January 1, 2021
  • BTC/USD = $100
  • The BitMEX BTC/USD 31 December 2021 Futures Contract (XBTUSD) = $100
  • Each XBTUSD is worth $1 of BTC at any price
  • Funding Interval = 8 hours at 04:00 UTC, 12:00 UTC, and 20:00 UTC

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Co-Founder of 100x. Trading and crypto enthusiast. Focused on helping spread financial literacy and educate investors.

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Arthur Hayes

Arthur Hayes

49.93K Followers

Co-Founder of 100x. Trading and crypto enthusiast. Focused on helping spread financial literacy and educate investors.