What is calendar spread trading?

Haru Invest’s third core investment strategy focuses on calendar spread trading that leverages the volatility of BTC/ETH futures contracts.

What is calendar spread trading?

Option prices are set differently depending on the maturity and strike price. Calendar spread trading is buying and selling options with different strike prices at the same maturity or buying and selling options with different maturity at the same strike price.

Earlier, we described perpetual futures as one of the characteristics of the crypto futures market. But the crypto exchange market still has contracts with different maturity.

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And similar to the spot market, the price of futures contracts is different because the order book of each exchange is all different and therefore there is a price gap between options with different maturity. This is market inefficiency in futures trading, in which the spread trading strategy is deployed to take the advantage of.

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