Hello, I watched the shitcoin talk that you spoke on. You mentioned doing a "long spot short quarterly futures" trade and just having that be the only trade for the quarter, but this seems really dangerous!! this exact trade can lose money on FTX
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If you are e.g. long SOL from $3 and short SOL-0326 from $3.30, you locked in a 10% gain on whatever size you put in, but if SOL moons you can be paying USD spot borrowing rates on arbitrarily high amounts of USD
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some of my pals think it is weird that they have to pay to spot borrow USD in this situation. What do you think ?
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It's a decent point -- I think the real answer here is that: you had $3, which was 1 SOL. Then SOL goes up to $6; but because of your hedge you don't actually really have enough money for 1 SOL any more, so you have to close down some of each leg if you don't want to borrow.