Here’s my take on this, because I think it’s way simpler than this thread makes out. The question is “why do ETHUSD perpetuals on bitmex trade at a premium to spot ETHUSD”?https://twitter.com/SBF_FTX/status/1403832569037135872 …
Show this thread
-
All those numbers are high, so the required increase in the funding rate to offset the benefits is also very high — the funding rate is typically around 100% annualised, compared to 10-20% annualised for the non-quanto ETHUSD contract on other exchanges.
Show this thread
No bread, no houses, no teddy bears required to understand it — just a very basic appreciation of what a quanto is.
-
-
This Tweet is unavailable.
-
Correlation and both vols are higher so the effect is much more dramatic here. USD vol so low that you sometimes barely notice it in the Nikkei quanto. This so crypto’s gift to the world.
End of conversation
-
-
-
I mean yeah, but we're acquiring retail customers through unpaid social channels here, important to drive engagement with a narrative hook!
-
Good point, silly of me to assume the intent to educate!
- Show replies
New conversation -
-
-
this was a much better explanation
Thanks. Twitter will use this to make your timeline better. UndoUndo
-
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.