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RE: Double-Pamp Confirmed

in LeoFinance9 days ago

Negative funding on perps is a rare thing in a bull market. As a short term trade what you are doing might make sense, but you are facing a few big negatives/risks.

  1. Funding rates might shift to the opposite on a dime.
  2. You might not get a chance to re-enter with perps at the same or better price after selling on spot.
  3. You pay fees on every trade you take (decent ones on spot trades).
  4. Exchange risk that you mentioned yourself.
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1] this is not a problem if you check in on the position once a day
2] the price isn't going to change enough in the <60 seconds it takes to do this to matter
3] fees on MEXC are almost nonexistent and huge orders can be reduced to zero using maker limit orders. My trading fee on $2400 was 30 cents.
4] Worth repeating over and over again. Counterparty risk can not be overstated.

  1. Funding on most exchanges changes every 8 hours. And in Hive's case for example Bybit has changed it to 2 hours and later adjusted to 4 hour.
  2. Maybe. But then you are dealing with slipage if you are executing this trade at market prices.
  3. Do MEXC require KYC? I haven't tried them yet. Their fees might be better than other places.