3 ms·
The put hedge is a fraction of the cost of the total BTC you currently hold. It's basically insurance on your current BTC holding and you're willing to pay the
by 0x445442 9y ago
The put hedge is a fraction of the cost of the total BTC you currently hold. It's basically insurance on your current BTC holding and you're willing to pay the "premium" to dampen the volatility of BTC.
- kgwgk 9y agoShorting using futures has nothing to do with buying puts. You can think of buying puts as buying insurance (you pay now for the option to sell your BTC at a guaranteed price later), but buying/selling futures is esentially giving you the same exposure as buying/selling the underlying asset.