Lately we’ve been learning about bitcoin futures spread trading. Cryptocurrency futures spread trading and basis trading are types of market-neutral strategies where the investors seek to profit from the change in the price differences between two futures contracts.

Spreads can be categorized as intramarket spreads and intermarket spreads.

Intramarket spreads, also referred to as calendar spreads, involve buying a futures contract with delivery date in one month while simultaneously selling the contract on the same underlying asset with the delivery date in a different month.

Calendar spread traders are primarily focused on changes in the relationship between the two contract months. The goal of this strategy is to take advantage of those changes. In most cases, there will be a loss in one leg of the spread, but a profit in the other leg. If the calendar spread is successful, the gain in the profitable leg will outweigh the loss in the losing leg.

BitSpreader allows to trade on two markets simultaneously with the use of market as well as limit orders allowing for effective execution and position management for the bitcoin spread traders

Currently we are working on implement active quoting with the use of limit orders on the quoting exchange (purchases on hedging exchange will still be done using market orders). Next steps will be adding integration to  HuobiDM, Cryptofacilities, BitMex and Kraken Futures.

Update 2022-09-10: We are releasing public version of our crypto futures spread trading platform:

BitSpreader is one-stop-shop trading platform for crypto futures spread trading and crypto basis trading.

BitSpreader Trading Terminal allows for smooth execution of spread trades, tracks users spread positions and allows for monitoring and active management of the exposure.

Calendar spreads – BitSpreader supports spreads constructed from two legs – two outright futures contracts. Traders can choose to trade on two outright contracts with the same underlying instrument but with different delivery dates.

Basis trading – For the purpose of basis/cash and carry trading we support perpetual futures contracts. Users can engage in basis trading by constructing the spread that consists of one contract with defined delivery date and second that is perpetual contract.

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