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 = Using Delta Neutral Strategy to hedge against volatility and earn funding fee income. In simple terms, it means simultaneously: ▫️ Buying spot (going long) ▫️ Selling contracts (going short) This way, regardless of whether the market goes up or down, the risks from price fluctuations are offset, and you earn money from the funding rate～ 💡 For example: ▫️ You bought 1 BTC in spot ▫️ At the same time, you shorted 1 BTC in contracts ▫️ If the contract has a "positive funding rate," you can collect rent (earn interest) every day! 📌 Want to earn more? #OKX has exclusively launched the "Increase Investment Amount" feature! ▫️ For instance, if you invest 10,000 USDT and choose 2x leverage, the system will lend you 10,000 USDT, making your total investment 20,000 USDT, and your returns will double. ⚠️ Borrowing money incurs interest, so remember to manage your risks～ 2/

▪️ What exactly does arbitrage earn? Besides the funding fee, there is a key indicator called "spread rate". It affects your profit and loss when opening and closing positions, and is a hidden variable in arbitrage strategies that many people overlook. ▫️ What is the spread rate? It measures the price difference between buying and selling: Spread Rate = (Selling Price - Buying Price) / Buying Price × 100% ▪️ In smart arbitrage, you will: ▫️ When opening a position: Sell contracts + Buy spot ▫️ When closing a position: Buy contracts + Sell spot Each of these processes has a "spread rate". ▪️ Let's use a 🌰 example to understand the impact of the spread rate—— ▫️ When opening a position: Contract selling price > Spot buying price → Positive spread → Potential profit Contract selling price < Spot buying price → Negative spread → Potential loss risk ▫️ When closing a position: Spot selling price > Contract buying price → Positive spread → Profit Spot selling price < Contract buying price → Negative spread → Loss 💡 In summary: The larger the spread rate, the higher the potential return; the smaller the spread rate, the lower the potential return, and it may even lead to potential losses.

💡 So, setting the "spread rate condition" is very crucial! It can help you: ▫️ Control slippage when opening/closing orders ▫️ Lock in the arbitrage conditions you want ▫️ Avoid losses from the "buy low, sell high" reverse operation You can choose the "default system recommendation" for the spread rate or set it manually: ▪️ Manual setting method: ▫️ When opening an order: Click "Advanced Settings" → Enter "Opening Spread Rate" ▫️ When closing an order: Click "Stop Strategy" → Enter "Closing Spread Rate" ▫️ Once set, the system will intelligently place orders based on the conditions you set 4/

💡 Summary: Who is suitable for using the "Smart Arbitrage" strategy? ✨ Conservative users → Want to earn stable returns, not gamble on market trends. ✨ Those who want to utilize USDT efficiently → Use idle funds to earn funding fees, increasing capital utilization. ✨ Experienced players familiar with arbitrage → Understand the power of the combination of price differences + funding fees. Tagging some teachers who might be interested in smart arbitrage to give it a try 🤩～！ @BTC_Alert_ @CycleStudies @butaidongjiaoyi @Trader_S18 @LuYao_Trader @Bitfatty @Amy6Tina