What are the potential trading strategies based on the SOFR future curve in the cryptocurrency industry?

1 answers

• Dec 17, 2021 · 3 years ago
  As an expert from BYDFi, I can tell you that one potential trading strategy based on the SOFR future curve in the cryptocurrency industry is arbitrage. Traders can take advantage of price discrepancies between different cryptocurrency exchanges by buying low on one exchange and selling high on another. The SOFR future curve can provide valuable insights into potential arbitrage opportunities. By monitoring the SOFR future curve and comparing it with the prices on different exchanges, traders can identify profitable arbitrage trades. However, it's important to note that arbitrage opportunities may be short-lived and require quick execution. Additionally, traders should consider the fees and liquidity of the exchanges involved in the arbitrage trade to ensure profitability.
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