Singapore Exchange offers crypto futures for “advanced” traders
In films about financial markets, the protagonists are typically passionate about the direction of prices. The unconventional contrarians of “The Big Short” bet that the value of bonds backed by subprime mortgage loans will plunge. The meme stock devotees of “Dumb Money” reckon that if they keep the faith, their holdings will rise “to the moon.”
However, many of the biggest players in finance today don’t care whether prices rise or fall by very much. Using mountains of borrowed money to magnify their returns, they seek to profit from tiny differences between prices for the same thing in spot and futures markets, a gap known in the industry as “basis.”
In the classic case of basis trading, hedge funds take offsetting…
