What is a basis risk? Explained simply

The basis risk is inherent to all futures contracts and arises from the fact that futures do not correlate flawlessly with the spot price of the underlying asset. The basis itself is the difference between the spot price and the futures price. If a hedge position needs to be closed before the...
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Bitmex funding explained

Simply put, a perpetual contract is a futures contract which never expires and never settles. Naturally, those familiar with a futures trading will ask how is this possible, since the settlement is the reason futures price converges towards the spot price over time, and if there’s no settlement...
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