Quote Originally Posted by Raffe View Post
20% risk free.

Haven laughed that much in years. Risk free is negative, anything with a higher yield is by definition risky. Junk bonds pay 4%. Any strategy paying 20% is telling you that you are unlikely to get your capital back.

Don't tell me it's different with crypto, because you are not exposed to crypto if you are buying spot and selling forward.
Seems reasonable to me, but do explain (or are you laughing too much??)

Willy Woo explains it simply:

You buy 1 BTC right now.

You sell 1 BTC futures contract at a premium right now.

This contract settles at some BTC price (without premium) in the future. You have that value in BTC so fully protected.

You pocket the premium.

Repeat.