Category: Trading

Important Changes to Bitcoin / USD Swap Funding

Arthur Hayes

Occasionally the BitMEX Bitcoin / USD Swap, XBTUSD, trades at a significant premium or discount to the mark price. This generally happens during periods of extreme volatility.

In order to ensure that the XBTUSD product trades close to the mark price the following change will be made.

Given 8 hours’ notice, BitMEX may decrease the funding interval from 8 hours to 2 hours to allow funding rates to better reflect the market. The leverage will remain unchanged at 100x. The funding interval will subsequently be increased from 2 to 8 hours after the market has stabilised.

An 8 hour funding interval means that the maximum amount of funding paid or received is +/- 1.125% per day. A 2 hour funding interval means that the maximum amount of funding paid or received is +/- 4.50% per day.

To learn more about the BitMEX Bitcoin / USD Swap especially how the mark price is calculated, please read the Swaps Guide.

Notice Regarding Spam Orders

Arthur Hayes

We intentionally set the contract sizes of BitMEX products at low values to encourage traders both large and small to trade on BitMEX. However, some traders abuse this and spam the orderbook or trade feed with many small orders.

The following changes were made effective on 10 June 2016 12:00 UTC:

  • Accounts with too many open orders with a gross value less than 0.0025 XBT each will be labeled as a Spam Account.
  • If you are a Spam Account:
    • Orders below 0.0025 XBT in value will automatically become hidden orders.
    • Hidden orders do not show in the orderbook and always pay the taker fee.
    • Post-Only spam orders will be Rejected instead of being hidden.
    • Too many spam orders may be grounds to temporarily ban an account from trading.
  • Spam Account designations are re-evaluated and lifted automatically every 24 hours if user behavior has changed.

How To Arbitrage Bitcoin Futures vs. Spot

Arthur Hayes

little_old_play_bag_full_of_money_joke_1

One of the simplest and most profitable arbitrage strategies, is to earn the basis between spot and futures contracts. This post is meant to provide a step by step instruction on how to earn this basis using Bitcoin and BitMEX Bitcoin futures contracts.

Definitions

Futures Contract: Gives the buyer or seller the economic benefit of owning or shorting Bitcoin.

Spot: The price of Bitcoin for immediate delivery.

Basis: Futures Price – Spot Price

The BitMEX futures contract that will be used in the following examples is the XBTZ16 contract.

XBTZ16 Contract Details:

Contract Value: 1 USD of Bitcoin at any price.

USD Contract Value: 1 USD

Bitcoin Contract Value: 1 USD / Bitcoin Price * Number of Contracts

Settlement Index: Kaiko BitMEX Index, 50% Bitstamp and 50% OKCoin USD, I will refer to this as the Spot Price.

Settlement Date: 30 December 2016 12:00 UTC

Step 1, Buy Spot vs. Sell Futures

Assume that the XBTZ16 price is $120, and the spot price is $100. The basis is $20.

The first step is to wire $5,000 USD to Bitsamp and OKCoin. Then you will by 50 Bitcoin on each exchange. You are now long 100 Bitcoin, and short $10,000.

After you have purchased the Bitcoin, send 20 Bitcoin to your BitMEX wallet. You now need to calculate the correct amount of XBTZ16 contracts to sell. You have bought $10,000 worth of Bitcoin. You will also generate the Basis * Number of Bitcoin Bought of profit.

Total USD to Hedge = $10,000 + ($20 * 100 Bitcoin) = $12,000

Since each XBTZ16 contract is worth 1 USD, you must sell 12,000 contracts.

XBTZ16 is leveraged so you do not need to send the full Bitcoin value of the order to BitMEX. The maximum leverage is 100x, but I advise the use of no more than 10x for this strategy.

Step 2, Calculate Your Profit

You have purchased Bitcoin for $100, and have sold it in the future for $120. You will earn the full basis regardless of where the Bitcoin prices is at settlement.

XBTZ16 profit and loss is based in Bitcoin. Assume the settlement price equals $100.

Bitcoin profit calculation = (1 USD / $100 – 1 USD / $120) * 12,000 = 20 Bitcoin

If the spot price is $100 on settlement date, then your 20 Bitcoin is worth $2,000. You have earned the $2,000 as predicted earlier.

Step 3, Settlement

On 30 December 2016, your XBTZ16 futures contracts will expire. Let’s assume that settlement price is $100. The settlement calculation period is 11:30 UTC to 12:00 UTC. A 30-minute time weighted average price (TWAP) is used; each minute the last price of the settlement index is stored, and an average of the 30 prices is taken to arrive at the final settlement price.

All Bitcoin that is not being used as margin must be sold in order to match the settlement price. Once the futures contract expires, the margin and the realised profit will be available to sell. At that time, withdraw the Bitcoin from BitMEX and sell these Bitcoin.

In the above example, we sent 20 Bitcoin to BitMEX as margin, and the remaining 80 Bitcoin we stored in our personal wallet. You will sell 80 Bitcoin between 11:30 UTC and 12:00 UTC. You will now have 20 Bitcoin of margin and 20 Bitcoin of profit to sell after XBTZ16 expires at 12:00 UTC.

Hopefully you will be able to sell all 120 Bitcoin, and match the settlement price of $100. You started with $10,000, and now you have $12,000. You have successfully used spot and futures contracts to generate a 20% return on capital.

How to Market Make Bitcoin Derivatives Lesson 1

Arthur Hayes

high frequency trading

Providers of liquidity, or market makers, provide an essential service to any tradable market. They ensure that there is always a buy (bid) price and sell (ask or offer) price. This allows traders to enter and exit a market at any time.

If Bitcoin and the digital currency trading industry are to grow, exchanges will need more and more market makers to provide additional liquidity. There are many traders who have graduated from purely directional trading, to providing liquidity on various spot markets. This series of lessons is meant to give traders a basic understanding of how to market make digital currency derivatives.

Lesson 1 will focus on how to quote a two-way price, a simple dynamic hedging strategy, and settlement. In order to keep the math simple, we will use an 7-day expiring Ethereum Classic / Bitcoin futures contract, ETC7D.

Contract Details:

Contract Value: 1 ETC

Underlying: Poloniex ETC/XBT exchange rate

Settlement: 30-minute Time Weighted Average Price (TWAP) Friday 12:00 UTC

How to Calculate Bid / Ask Quotes

A futures contract derives its value from the underlying asset. For ETC7D, the underlying asset is the Poloniex ETC/XBT exchange rate.

Your trading program needs a live feed of the bid, ask, and last price of ETC/XBT on Poloniex. For starters, I advise you to calculate the mid price (average of bid and ask). As a market maker, you will hold futures contracts until settlement. Because a futures contract will equal spot at settlement, we can value ETC7D by the following formula:

ETC7D Quote Mid = ETC/XBT Mid Price (Spot) + Basis or Skew

After calculating your ETC7D Quote Mid, you will apply your spread. We will discuss how to calculate a Basis or Skew in Lesson 2.

As a market maker your spread compensates you for hedging costs (trading commissions, and bid / ask spread) on the underlying exchange, and the volatility of the underlying asset.

I will ignore the volatility component for now.

Spread = Spot Trading Fees + Spot Bid / Ask Spread + Market Maker Profit

The Market Maker Profit is how much you would like to earn on every trade.

Example:

Spot = 0.02 XBT

Basis or Skew = 0 XBT

Spot Trading Fees = 0%

Spot Bid / Ask Spread = 0%

Spread = 1.00%

ETC7D Quote Mid = 0.02 XBT

ETC7D Quote Bid = 0.02 XBT * 0.995 = 0.0199 XBT

ETC7D Quote Ask = 0.02 XBT * 1.005 = 0.0201 XBT

These quotes will be calculated then sent to BitMEX.

Simple Dynamic Hedging

Your goal as a market maker is to be market neutral. As other traders hit your bids and lift your asks, you must hedge yourself in the spot market.

Since each ETC7D contract represents 1 ETC, if you sell 1 ETC7D contract, you must buy 1 ETC. If you buy 1 ETC7D contract you must long sell or short 1 ETC.

A trader buys 300 ETC7D contracts at 0.0201 XBT from you. You are now short 300 ETC. Your trading program will automatically buy 300 ETC/XBT on Poloniex for 0.02 XBT.

Symbol Position Trade Price XBT Value
ETC7D -300 0.0201 XBT -6.0300 XBT
ETC/XBT +300 0.0200 XBT +6.0000 XBT
Unrealised Profit +0.03 XBT

You now have 0 ETC exposure. Because you have sold ETC7D at a greater price than where you bought ETC spot, you have an unrealised profit of 0.03 XBT.

You are still quoting a two-way market of 0.0199 XBT / 0.0201 XBT for 300 contracts each side. A new trader decides to sell 300 contracts at your Bid price of 0.0199 XBT. Your ETC7D position is flat (you sold 300 ETC7D previously, and now you just bought 300 ETC7D), and you are long 300 ETC/XBT; your net exposure is long 300 ETC. Your trading program long sells 300 ETC/XBT at 0.02 XBT.

Symbol Position Trade Price XBT Value
ETC7D -300 0.0201 XBT -6.0300 XBT
ETC/XBT +300 0.0200 XBT +6.0000 XBT
ETC7D +300 0.0199 XBT +5.9700 XBT
ETC/XBT -300 0.0200 XBT -6.0000 XBT
Realised Profit +0.06 XBT

Your portfolio is flat. You have realised a profit of 0.06 XBT or 1% of the value of your quotes. That 1% equates to the spread you built into your Bid and Ask quotes.

This is the simplest form of market making. You take the underlying spot price, apply a spread, and dynamically hedge 1:1 whenever anyone trades on your quotes.

Settlement

If you hold a futures contract over settlement, it will expire and leave you with no exposure.

Your Portfolio:

Symbol Position Trade Price XBT Value
ETC7D -300 0.0201 XBT -6.0300 XBT
ETC/XBT +300 0.0200 XBT +6.0000 XBT
Unrealised Profit +0.03 XBT

If you do nothing, on Friday 12:00 UTC your ETC7D position will go to 0, and you will be left long 300 ETC/XBT. Your goal is to be market neutral, so during the settlement calculation period you need to reduce your spot hedge to 0.

ETC7D expires based on a 30-minute TWAP. BitMEX will take the spot prices on Poloniex each minute and compute an average, which then becomes the settlement price. To capture the unrealised profit of 0.03 XBT, you to sell ETC/XBT at the ETC7D settlement price.

Your trading program will split your spot hedge into 30 slices, or 10 ETC. Each minute you will sell 10 ETC at market to match the price used in the settlement calculation. Because the settlement calculation uses the last price each minute, you theoretically will match the settlement price.

Any difference between your sell trade executions and the prices used in the settlement calculation is called Slippage. In this example, if your Slippage is more than 0.50%, you will lose money. If you have 0% of Slippage you will earn the full unrealised profit.

In Lesson 2, I will explain how to calculate a Basis and Skew. These two variables tie in closely with inventory management.

If you wish to begin market making on BitMEX, please take a look at our sample market making bot on Github.

Swaps 101

Arthur Hayes

 

I Want A Ferrari

I like cars. I would really like to experience the thrill of driving a Ferrari, but I really don’t want to own a car. People who own a Ferrari but don’t drive it often might want to earn some income by loaning out their car.

I would be willing to pay a rate of interest, to drive a stranger’s Ferrari for a short period of time. I am willing to swap an interest payment, for the use of a Ferrari.

Altcoins Are Like Ferraris

Traders love altcoins because they have extreme volatility on the up and downside. Savvy traders can earn substantial sums trading altcoins in a short period of time. However, most traders have no interest in holding or storing altcoins. They just want to participate in the price performance of the coin.

As a result, most altcoin traders prefer to trade on margin. To go long they pledge Bitcoin as collateral, borrow additional Bitcoin and buy the altcoin of their choice. To go short, they pledge Bitcoin as collateral, and borrow the altcoin to short it. In both cases, the traders must pay interest to the lender of Bitcoin or the altcoin.

Just like the Ferrari example above, traders swap interest payments for the performance of the altcoin. Traders have no interest in owning the coin, but they obtain the same economics through a swap.

BitMEX Swap Basics

BitMEX swaps mimic the exchange of cash flows and price performance inherent in trading any currency pair. Every currency pair consists of a base and quote currency. The base currency comes first then the quote currency in any currency pair code. For ETHXBT, ETH is the base currency and XBT is the quote currency.

Imagine you want to buy ETH. You first need to borrow XBT to exchange it for ETH. The person lending you XBT will charge you a rate. Once you have purchased ETH, you can lend it out to someone else.

In this example, as a buyer of ETHXBT, you pay the XBT (quote currency) rate and receive the ETH (base currency) rate. The opposite is true if you wished to sell ETHXBT.

To perfectly replicate the action of borrowing and lending the base and quote currency, buyers of BitMEX swaps must pay the quote currency rate and receive the base currency rate. Sellers of swaps must pay the base currency rate, and receive the quote currency rate.

BitMEX does not operate a lending market for either the base or quote currency, so the rates reference an external third party market.

Buyers and sellers swap interest rate payments for exposure to the underlying asset. Buyers of ETHXBT are long and profit from a rise in price; sellers of ETHXBT are short and profit from a decline in price.

The net of the base and quote interest rates is the Funding Rate. The Funding Rate is charged each day at the Funding Timestamp based on the value of the position. It’s just like a bond. If you hold the bond on the coupon date, you get a payment. If you do not, you get nothing. If you buy ETHXBT and sell it before the Funding Timestamp, you are not eligible to pay or receive the Funding Rate.

Swap Boxes And Arrows

BitMEX Swaps Flow

The diagram above shows the interest payments and performance obligations for buyers and sellers of ETHXBT.

How Are Swaps Valued?

BitMEX intends for swaps to mimic margin trading. Swaps are valued at the prevailing spot price of the underlying asset. For ETHXBT, that is the ETH/XBT exchange rate on Poloniex.

To ensure that the swap’s price does not deviate greatly from spot, each week unrealised profit will become realised at the prevailing spot price. That allows profitable traders to either withdraw their winnings, or either re-leverage them on additional contracts.

Is There Leverage?

Of course, this is BitMEX. Because no physical asset changes hands, BitMEX is able to offer very high leverage on swaps. If two traders wish to trade an ETHXBT swap worth 100 XBT, each side must post at least 4 XBT of margin. If the price declines or rises by more than 2%, the long or short trader will be liquidated. For more information, please refer to the Liquidation document.

How Long Do Swaps Last?

The beauty of BitMEX swap contracts is that there is no settlement date. As long as you can afford to pay the daily funding rate, and the spot price does not touch your liquidation price, you can keep your swap. If you wish to close your swap, trade out of your position in the open market. Buyers close their swaps by sell; sellers close their swaps by buying.

Let’s Trade

ETHXBT is BitMEX’s first swap product. It allows traders to trade the ETH/XBT exchange rate with up to 33x leverage. Traders do not need to own or borrow ETH to trade ETHXBT. Margin, profit and loss are all denominated in Bitcoin.

Trade ETHXBT Today!

 

How To Trade Factom

Arthur Hayes

The hottest new altcoin on the block is Factom (FCT). Factoid is the token used to power the Factom protocol. Although technically incorrect, BitMEX calls the token as Factom. Now that Factom is freely tradable, this post will explain the different ways to express bullish and bearish views on this new cryptocurrency.

Spot Trading

Buying and selling Factom on a spot basis is quite simple. The most liquid Factom currency pair is Factom/Bitcoin (FCT/XBT). Poloniex is the leading exchanges by volume.

Buying Factom

To buy Factom, send Bitcoin to the exchange and exchange it for Factom. This must be done on a fully funded basis (i.e. there is no leverage).

Selling Factom

If you hold physical Factom, you can exchange it back for Bitcoin. Selling Factom you don’t possess is not possible.

Leveraged or Derivatives Trading

For most of the readers of this blog, leveraged trading / speculating presents a more interesting way to trade Factom. With the exception of Bitcoin and Litecoin, leveraged or derivatives trading on altcoins was not possible. BitMEX recognised that Bitcoin traders would like to speculate on Factom with leverage and using only Bitcoin as margin.

BitMEX recently launched the FCT7D, a weekly expiring FCTXBT futures contract. Each FCT7D contract represents 1 FCT. The contract expires each Friday at 12:00 GMT on the FCTXBT exchange rate. All margin, profit, and loss are conducted in Bitcoin. The maximum leverage allowed is 10x.

Buying Factom Futures

BitMEX Factom futures contracts allow traders to speculate on the future value of the FCTXBT exchange rate. A trader who wishes to go long 1,000 FCT, must buy 1,000 FCT7D contracts. The beauty of FCT7D is that it requires Bitcoin as margin. The maximum leverage is 10x. If the FCT7D price is 0.005, the trader must post 0.5 Bitcoin as margin (1,000 Contracts * 0.005 FCTXBT * 10%). If the price rises to 0.006, the profit is 1 Bitcoin = (0.006 – 0.005) * 1,000.

Selling Factom Futures

Short selling, or selling something you don’t possess is usually impossible with altcoins. Using FCT7D, traders are able to placed leveraged bearish bets on Factom as long as they own Bitcoin. For example, a trader who wishes to go short 1,000 Factom, must sell 1,000 FCT7D contracts. Again only Bitcoin is required for margin. If the FCT7D price is 0.005, the trader must post 0.5 Bitcoin as margin (1,000 Contracts * 0.005 FCTXBT * 10%). If the price falls to 0.004, the profit is 1 Bitcoin = (0.004 – 0.005) * -1,000.

Placing leveraged trades, and shorting Factom using only Bitcoin is only possible with BitMEX’s FCT7D futures contract. FCT7D Contract Description

Start Trading Factom Now

Trade The China Stock Market With BitMEX And Bitcoin

Arthur Hayes

China’s stock market is one of the most difficult markets for non-Chinese to access.  Even for normal Chinese investors, trading with leverage both on the long and short side is almost impossible. BitMEX is committed to providing investors access to global markets using Bitcoin.

BitMEX’s China A50 Equity Index Futures Contract allows investors who possess Bitcoin the ability to speculate with leverage, long or short, on the Chinese equity market.

How Does It Work?

The China A50 Equity Index comprises the 50 biggest companies in China. The index is priced in CNY. However, investors using the BitMEX product will receive 0.0001 Bitcoin (XBT) per 1 CNY move in the index.

This is great for investors because if the China stock market rises by 10% and you are long, your futures contracts will be worth 10% more as well. The same is true if you are short.

What Are The Trading Hours?

The China stock market is open daily from 09:15 to 11:30 and then 13:00 to 15:00 Beijing Time (GMT + 8). Even though the stock market is only open Monday to Friday for 4 hours and 15 minutes, the BitMEX China A50 futures contract trades 24/7.

How Does Settlement Work?

The BitMEX China A50 futures contract has monthly expiries. The contract expires based on the closing price of the BitMEX CHINA A50 Index to two decimal places. The closing price of the index is calculated using the last traded prices of the 50 index members. The settlement date is the 2nd to last business day in China of each month.

Your profit is determined by the difference between your entry price and the settlement price. For example, if you bought 100 A50G16 (February 2016 expiring) contracts at 10,000 CNY and the settlement price was 11,000 CNY, your profit would be 10 XBT or (11,000 CNY – 10,000 CNY) * 0.0001 XBT * 100 Contracts.

Is There Leverage?

The BitMEX China A50 futures contracts allow investors to trade with up to 25x leverage. If you want to go long 100 XBT of China, you only need to deposit 4 XBT of equity. Because of the high leverage, the BitMEX China A50 futures contracts are margined according to the Dynamic Profit Equalisation system.

How Do I Get Started With BitMEX?

If you don’t have a BitMEX account, Register Here. Once you have registered, go to your Deposit Page and you will be given a unique deposit address where you must send Bitcoin. Once BitMEX has received your Bitcoin, it will be credited to your account and you can begin trading.

BitMEX China A50 Futures Arbitrage

Arthur Hayes

Arbitrageurs and market makers are necessary in order to create a liquid market. Bitcoin futures contracts are relatively easy to market make and arbitrage because the underlying is Bitcoin and anyone with an internet connection can trade Bitcoin. Market making or arbitraging futures contracts with China stocks as the underlying is more difficult.

A few years back, the Singapore Exchange launched a USD quanto futures contract on the CHINA A50 Index. I was trading the SGX A50 futures contract when it first listed. Recently, the SGX A50 futures contract has become a flow monster and is the only liquid way for investors outside of China to go long or short the China A share market with leverage.

To jump start liquidity, BitMEX has copied some of the contract terms of the SGX product. This allows traders with access to the SGX to easily market make and arbitrage the BitMEX China A50 futures contract.

SGX vs. BitMEX

The difference between the SGX and BitMEX futures product is that the SGX product pays out USD and the BitMEX product pays out Bitcoin (XBT), and the settlement index. Both futures contracts expire on the same day and at the same time. The BitMEX product uses the BitMEX China A50 Index for settlement.

SGX $1 USD per 1 CNY

BitMEX 0.0001 XBT per 1 CNY

SGX vs. BitMEX Trading Hours

The below table lists the trading hours of the SGX contract:

GMT Singapore Time Type
00:45 – 01:00 08:45 – 09:00 Pre-Open
01:00 – 07:55 09:00 – 15:55 Open
07:55 – 08:00 15:55 – 16:00 Pre-Close
08:30 – 08:40 16:30 – 16:40 PM Pre-Open
08:40 – 15:59 16:40 – 23:59 PM Open
16:00 – 18:00 00:00 – 02:00 PM Open

The BitMEX contract is open 24/7. While the SGX is open, market makers can use the SGX futures price as their price on BitMEX (there is a caveat to this that I will mention later).

Once the SGX contract ceases trading during US market hours, another product must be used as a proxy for China. From 18:00 GMT to 21:00 GMT, traders can use one of the many China ETFs. The CSOP AFTY ETF is an ETF that replicates the same index as the BitMEX futures contract. Traders can imply the fair value of the China A50 index by taking the Net Asset Value (NAV) of AFTY using the last traded prices of the ETF constituents, and then looking at the percentage change vs. the current market price of the AFTY ETF.

Market Price / NAV – 1 = Implied Change in China A50 Index

From the US close to the Asian open the next day, there is no product that trades with the China A50 as an underlying. We expect in the future that the BitMEX futures contract will become the leading indicator of where the Chinese equity market will open.

Settlement

Assume the following:

XBTUSD = $100

Long 1 SGX A50 at 10,000 CNY

Short 100 BitMEX A50 at 10,000 CNY

USD Exposure

SGX: $1 * 10,000 CNY * 1 Contract = $10,000

BitMEX: 0.0001 XBT * 10,000 CNY * -100 Contracts * $100 = -$10,000

XBT Exposure

SGX: $1 * 10,000 CNY * 1 Contract / $100 = 100 XBT

BitMEX: 0.0001 XBT * 10,000 CNY * -100 Contracts = -100 XBT

The settlement price is 11,000 CNY

Profit and Loss (PNL)

SGX: (11,000 CNY – 10,000 CNY) * $1 * 1 Contract = $1,000

BitMEX: (11,000 CNY – 10,000 CNY) * 0.0001 XBT * -100 Contracts = -10 XBT

Net PNL in XBT

SGX: $1,000 / $100 = 10 XBT

BitMEX: -10 XBT

Net: 0 XBT

Net PNL in XBT if XBTUSD rises to $200

SGX: $1,000 / $200 = 5 XBT

BitMEX: -10 XBT

Net: -5 XBT

Net PNL in XBT if XBTUSD falls to $50

SGX: $1,000 / $50 = 20 XBT

BitMEX: -10 XBT

Net: 10 XBT

Because of the different payout currencies, as a market maker your PNL has exposure to the XBTUSD rate. This is your quanto risk, and the covariance between XBTUSD and the China A50 Index is relevant to your net PNL at settlement.

Market Maker Rebates

To entice traders to provide liquidity, BitMEX offers a trading rebate for passive or maker orders. Makers will be paid 0.10% of the Bitcoin value of their order on each fill.

Information Links

BitMEX China A50 Index Futures Contract Details

Trade BitMEX China A50 Index Futures

SGX China A50 Index Futures Contract Details

CSOP AFTY ETF

BitMEX Arbitrage Lesson 4 Webinar

Arthur Hayes

Topics covered in Lesson 4:

  • Delta
  • Theta
  • Bitcoin Value of 1%
  • Portfolio Risk Management

The Webinar will air Thursday 28 January 03:00 GMT.

Webinar Link

You can listen live, and after the presentation ask questions. If you are unable to tune in, a recording will be made available shortly after the broadcast is finished.

Supporting Materials:

BitMEX Arbitrage Lesson 3 Webinar

Arthur Hayes

Topics covered in Lesson 3:

  • Constructing Futures Basis Term Structure
  • Curve Roll Down
  • Curve Directional Trades

The Webinar will air Thursday 21 January 03:00 GMT.

Webinar Link

You can listen live, and after the presentation ask questions. If you are unable to tune in, a recording will be made available shortly after the broadcast is finished.

Supporting Materials:

BitMEX Arbitrage Lesson 2 Webinar

Arthur Hayes

Topics covered in Lesson 2:

  • Cash and Carry Arbitrage
  • Calendar Spreads
  • Basic Volatility Arbitrage

The Webinar will air Wednesday 13 January 03:00 GMT.

Webinar Link

You can listen live, and after the presentation ask questions. If you are unable to tune in, a recording will be made available shortly after the broadcast is finished.

Supporting Materials:

BitMEX Arbitrage Lesson 1 Webinar

Arthur Hayes

BitMEX is committed to providing educational materials for the Bitcoin trading community. As more and more traders switch to futures trading, we want to help educate them on basic and advanced trading strategies. Our series of arbitrage webinars will focus on the basics of futures trading, arbitrage, and basis trading strategies. The webinars will be lead by Arthur Hayes the CEO of BitMEX.

In his previous life, Arthur spent 5 years as the head Exchange Traded Funds (ETF) market maker on the Hong Kong and Singapore stock exchanges at Deutsche Bank and Citibank. He also ran equity index future arbitrage across the major Asian ex. Japan Australia markets.

Topics covered in Lesson 1:

  • Differences between spot, margin, and futures trading
  • Differences between quanto and inverse futures contracts
  • Basics of pricing quanto and inverse futures contracts

The webinar will air Friday 8 January 2016 at 03:00 GMT.

Webinar Link

You can listen live, and after the presentation ask questions. If you are unable to tune in, a recording will be made available shortly after the broadcast is finished.

Supporting Materials: