Intended use
Intended for reading whether leverage is extended. Spot is long only. This is not a hedge.
Basis trend
The spot-futures basis is used as a sentiment indicator. A persistent premium leans short. A persistent discount leans long.
Usage
Execution
A persistent premium leans short. A deep discount leans long. Only one side is held at a time.
Before creation
The stop is part of the cap. The preview shows the stop price and the estimated maximum loss.
After it is running
The basis can continue to widen. The hedged version is the basis hedge strategy.
Allocated funds can be lost in full.
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