@Boywus This pricing strategy does require margin, but having 10x on both sides is disgusting. It would be better to just hedge with a coin-based pricing.
@Boywus It's different. Traditional finance doesn't have perpetual contracts; many transactions are settled quarterly. Therefore, arbitrage between September 1st and March 9th becomes a viable asset, saving on margin requirements. The crypto world doesn't have this capability.
@Boywus I was referring to your margin issue. Premiums and discounts are perpetually paid in the form of funding fees, but in APY, not ROI. Futures can directly lock in the price difference, so you get the money as soon as you buy.
@neoduan23 Yes, what I mean is that the core reason brokers offer discounts on the initial margin is the high correlation between the two legs, resulting in significant delta offsetting. The time offset discount is matched by the perpetual funding rate, so in principle, the discount is still approximately equal to the delta, and perpetual funds should also be able to do this. I don't know if I've explained it clearly 😂
@Boywus Yes, it's possible. Cross-product SK Korea-US spreads and cross-period spreads can actually be listed as separate contracts. So once exchanges enter the stock market, there's a lot of room for development. I'm already quite used to placing US stock orders on BN.