NBS on Nostr: npub1ly0yn…jamzj It's just very tough to put on a, what I call 'naked', position ...
npub1ly0ynwkgucwdxklhm5sjwkp7p5u47zuv270mqnmht42w7y2veleq4jamzj (npub1ly0…amzj)
It's just very tough to put on a, what I call 'naked', position into a big event. By naked I just mean you hold one position: short one asset into a 50:50 event.
That's why I wanted some hedge against just being plain short, and ETH looked very cheap relative. So worst case was they both rallied, and my short BTC didn't hurt as much, and best case was basically what happened: BTC lower, ETH higher.
Pairs trading correlated assets is a good way to take a position into a 50:50 event.
It's just very tough to put on a, what I call 'naked', position into a big event. By naked I just mean you hold one position: short one asset into a 50:50 event.
That's why I wanted some hedge against just being plain short, and ETH looked very cheap relative. So worst case was they both rallied, and my short BTC didn't hurt as much, and best case was basically what happened: BTC lower, ETH higher.
Pairs trading correlated assets is a good way to take a position into a 50:50 event.