Crypto

Core idea

Crypto market-neutral strategies combine spot, perpetuals, futures, options, or venue-to-venue positions to reduce coin-price direction. Funding, custody, liquidation rules, and exchange risk are central to implementation.

Implementation

Quoted spreads must be reduced by fees, funding variability, collateral requirements, and transfer constraints.

Primary risk

Venue failure, liquidation, unstable funding, and fragmented liquidity can break an apparently neutral trade.

Frequently asked questions

What is crypto?

Crypto market-neutral strategies combine spot, perpetuals, futures, options, or venue-to-venue positions to reduce coin-price direction. Funding, custody, liquidation rules, and exchange risk are central to implementation.

What is the main risk of crypto?

Venue failure, liquidation, unstable funding, and fragmented liquidity can break an apparently neutral trade.