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2.2.4 Spread market

August 20, 2020

The CoinFLEX spread market trades the price difference between perpetual swaps and quarterly futures of a selected underlying asset. In this case, it is also known as Basis trading. CoinFLEX offers high leverage on these markets, up to 125x on each leg of the trade (250x total leverage). 


Buying the spread signals the belief that the futures contract price will rise in value compared to the perpetual swap (spot) price. Thus, the trade buys (longs) the Quarterly whilst selling (shorting) the perp. Selling the spread is the opposite.


The key difference between spread trading and trading perpetual or quarterlies on CoinFLEX is that the trade has two components or ‘legs’: the perpetual leg and the quarterly future leg. These can be seen in the below screenshot of the positions tab of an open position in the BTC spread market. This is a ‘long’ position in which the quarterly contract is long and the perp is shorted. 


To close a position, it is advised not to do this from the ‘Positions’ tab as per perp or quarterly trading. As the trade has two legs, closing one first could cause the other to be undercollateralized – risking liquidation. It is advised to use the trade ticket to apply the reverse trade to close the position as described in the perpetual swaps section of this guide.


Delivery2C 2.2.4 Spread market


Other than this, spread market trading works very similarly to perps and quarterlies on the CoinFLEX trading UI.