Matrixport Advises Relative Value Transactions for Traders

It is reported that according to Matrixport, a cryptographic service provider, it is time to conduct relative value transactions. Traders can now buy Ethereum …

Matrixport Advises Relative Value Transactions for Traders

It is reported that according to Matrixport, a cryptographic service provider, it is time to conduct relative value transactions. Traders can now buy Ethereum call options and provide funds for them by selling Bitcoin call options, with considerable profit potential. Markus Thielen, director of research and strategy at Matrixport, said in a report to clients on Tuesday, “This allows traders to buy high-volatility assets (Ethereum) at the price of low-volatility assets (Bitcoin).”

Research director of Matrixport: The current market can sell Bitcoin call options to buy Ethereum call options

Interpretation of the news:


Matrixport, a cryptographic service provider, has advised traders to conduct relative value transactions by buying Ethereum call options and selling Bitcoin call options. The report suggests that this will not only increase traders’ investment opportunities but also has considerable profit potential. Markus Thielen, director of research and strategy at Matrixport, argued that traders can buy high-volatility assets, i.e., Ethereum, at the price of low-volatility assets, i.e., Bitcoin.

Relative value trading is an investment strategy that exploits the non-directional value of securities, i.e., their price movement regardless of market trends. It involves identifying two or more correlated financial assets, such as Ethereum and Bitcoin, and trading them based on their relative prices. In the case of Ethereum and Bitcoin, both are cryptocurrencies with different volatility levels, making them prime assets for relative value trading.

The Matrixport report suggests that traders can benefit from arbitrage opportunities by buying Ethereum call options with lower implied volatility and selling Bitcoin call options with higher implied volatility. The difference in implied volatility between the two assets offers traders an opportunity to profit from the price difference. This approach allows investors to take advantage of market inefficiencies while minimizing risks associated with traditional trades.

Overall, this strategic advice from Matrixport offers traders new opportunities in the cryptocurrency market to seek profit by trading two correlated assets with different volatility levels. Traders can leverage their resources by buying Ethereum call options, which have lower implied volatility, and selling Bitcoin call options, which have higher implied volatility. This will allow them to earn profits and take advantage of market inefficiencies.

In conclusion, the Matrixport report suggests that traders can conduct relative value transactions by investing in two correlated cryptocurrencies, Ethereum and Bitcoin, by buying and selling call options accordingly. The strategy offers enormous profit potential and helps reduce risks associated with traditional trades. Therefore, this advice has the potential to attract more investors to the cryptocurrency market and play a significant role in enhancing its efficiency.

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