Alright, I decided to try this crypto cash and carry thing.
Wish me luck.https://www.youtube.com/watch?v=Gvv0mASkg3U …
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unlikely, but possible that basis blows out to a multiple of the price of BTC eg, buy BTC 50K, sell forward 55K BTC unch and forward goes to 150K i'm not sure what exchange does in that case as they are on the hook for more than your margin.
They would close out your futures short somewhere between 100k and 105k. This is the risk to be least worried about though since if the basis blew out that wide it would represent an insanely compelling arb opportunity and someone would step in to close the gap.
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agree but the reason it goes there is because funding has disappeared for some reason.
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Mar 2020 in treasury futures basis markets is the closest comparison I can think of.
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