Recently, with the hot market, the interest rate of #OKX "smart arbitrage" has also risen, so what exactly is "smart arbitrage"? How to use it to earn stable income and "amplify income"? Mercy hasn't written a popular science thread for a long time! This article explains clearly 👇 🧵 1/

📌 Smart Arbitrage = Utilize delta-neutral strategies to hedge volatility and earn funding fee income Simply put, at the same time ▫️ Spot Buy (Long) ▫️ Contract Sell (Short) In this way, regardless of the rise and fall of the market, the risk caused by price fluctuations is offset, and you can make money by relying on the funding rate~ 💡 For example: ▫️ You buy 1 BTC of spot ▫️ Short 1 BTC contract at the same time ▫️ If the contract is a "positive funding rate", you can collect rent (earn interest) every day! 📌 Want to earn more? #OKX Exclusively launched the "Expand Investment Amount" function! ▫️ For example, if you invest 10,000 USDT and choose 2x leverage, the system will help you borrow 10,000 USDT, and the total investment amount becomes 20,000 USDT, and your profit will also double. ⚠️ Borrowing money has interest, remember to control risk~ 2/

▪️ What exactly does arbitrage earn? In addition to funding fees, there is also a key indicator called "spread rate" It affects your profit and loss when opening and closing orders, and is a hidden variable that many people overlook in arbitrage strategies ▫️ What is a spread rate? It measures the price difference between buying and selling: Spread Rate = (Ask - Bid) / Bid × 100% ▪️ In Smart Arbitrage you will: ▫️ When opening an order: Sell contract + buy spot ▫️ When placing a flat order: buy contract + sell spot Each of these two processes has a "spread rate" ▪️ 🌰 Let's understand the impact of the spread rate - ▫️ When opening an order Contract Ask Price > Spot Bid Price → Positive Spread → Potential Profit Contract Ask Price < Spot Bid Price → Negative Spread → Potential Loss Risk ▫️ When Flat Spot Ask Price > Contract Bid Price → Positive Spread → Profit Spot Ask Price < Contract Bid Price → Negative Spread → Loss 💡 In general: the larger the spread rate, the higher the potential return; The smaller the spread rate, the lower the potential gain or even potential loss 3/

💡 Therefore, setting the "spread rate condition" is very important! It can help you: ▫️ Control the slippage when opening/closing orders ▫️ Lock in the arbitrage conditions you want ▫️ Avoid losing money in the reverse operation of "buying low and selling high" You can choose the spread rate for the "Default System Recommendation" or set it manually: ▪️ Manual setup method: ▫️ When opening an order: Click "Advanced Settings" → enter "Open Spread Rate" ▫️ When closing an order: Click "Stop Strategy" → enter "Close Spread Rate" ▫️ After the setting is completed, the system will intelligently place an order based on the conditions you set 4/

💡 Summary: Who is suitable for using the "Smart Arbitrage" strategy? ✨ Robust users → I want to earn stable income and don't gamble on the market ✨ I want to use USDT efficiently → Use idle funds to pay for funds and improve the utilization rate of funds ✨ Veteran familiar with arbitrage gameplay → Understand the power of the combination of spread + funding fee Aite Some teachers who may be interested in intelligent arbitrage come and try it 🤩~! @BTC_Alert_ @CycleStudies @butaidongjiaoyi @Trader_S18 @LuYao_Trader @Bitfatty @Amy6Tina