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Mastering Dual Futures Positions to Earn Funding Rates
The strategy called 'Sun Sun Fund Buy' is somewhat different from typical fund buy and sell trading. It involves increasing risk to improve returns and is not recommended for beginners or those who don't spend much time on coins. Essentially, it involves simultaneously holding long and short positions on futures to capitalize on funding rate discrepancies across exchanges. For instance, if you hold a long position on Binance where the funding rate is negative, you'll earn funding fees, while shorting on another exchange with a positive funding rate will also earn fees, resulting in no net loss or gain beyond the fees collected. However, there is inherent risk, such as liquidation risks, especially when using high leverage. It’s crucial to understand that if one position liquidates, it could result in losses unless offset properly. For those interested, testing this method with small amounts and analyzing the effects could be beneficial, and experiential understanding is emphasized. Overall, this strategy should be practiced cautiously and is best suited for experienced traders familiar with futures and funding rates.
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AI Analysis
The 'Sun Sun Fund Buy' strategy leverages the differences in funding rates across various cryptocurrency exchanges by simultaneously holding opposing futures positions. This method rests on the premis...
AI Recommendation
Given the complexities and risks involved, the recommended course of action is to first understand and simulate the strategy using minimal funds. Engage in small-scale experiments by opening a balance...
Disclaimer
The AI analysis and recommendations provided are for informational purposes only. Any investment decisions should be made at your own risk. Past performance is not indicative of future results. Always conduct your own research and consider consulting with a financial advisor before making any investment decisions.
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