I'm sure you have all seen BNB pump recently. And maybe you were wanting to short it but its not looking like a great time from that chart. Well this will give us a chance to get bearish exposure to BNB while maintaining a Bitcoin neutral hedging for the coming drops. We can see clearly that FTT is not trending against China Coin. It is instead ranging. This invariably means that at some point we will break out of this range, and we think it is even possible to be happening some time in October or even sooner. For now this trade has a take profit level at the top of the range, and we will make sure to re-evaluate it after that.
This trade is also perfect from a fundamental perspective. Binance is not worth 15 times what FTT is worth. Right now, if FTT was properly valued the same as BNB, it would be worth $865.77 at the time of writing. That is a 15x in price.
To execute this trade properly, you would need to go to futures. There, you will short BNB and long FTX with the exact same amount. Again the bonus of this is that you will NOT lose money when BTC starts to dump more later!
This trade is also perfect from a fundamental perspective. Binance is not worth 15 times what FTT is worth. Right now, if FTT was properly valued the same as BNB, it would be worth $865.77 at the time of writing. That is a 15x in price.
To execute this trade properly, you would need to go to futures. There, you will short BNB and long FTX with the exact same amount. Again the bonus of this is that you will NOT lose money when BTC starts to dump more later!
Comment:
Also, let's say the funding rate is both positive which it probably is right now. You could go long with a spot trade on FTX and then only use futures to short BNB. That way, you won't pay but only gain funding.