Efficient and Low-Cost Spread Trading Strategies with Spread Express

Introduction to Spread Express

What is Spread Express?

Spread Express is a newly launched spread order book in the liquid market, allowing traders to execute any spread strategy combination with a single click while simultaneously trading both legs.

Key strategies available on Spread Express include arbitrage and spread trading, covering three primary strategy combinations:

• Funding Rate Arbitrage (Spot Trading - Perpetual Contracts)
• Basis Trading (Spot Trading - Delivery Futures)
• Delivery Spread (Perpetual Contracts - Delivery Futures, or Delivery Futures with Different Expiry Dates)

👉 Access Spread Express Now

Benefits of Trading on Spread Express

1. No Leg Risk
   Traditional spread trading requires manually executing orders on two separate order books, increasing the risk of partial execution. Spread Express ensures both legs are executed simultaneously, eliminating leg risk entirely.
2. Lower Price Slippage Risk
   Traditional methods introduce delays, leading to unexpected price fluctuations and slippage. Spread Express guarantees fixed spreads, minimizing slippage-related losses.
3. Higher Capital Efficiency
   Under OKX’s unified account and portfolio margin mode, traders enjoy reduced initial margin requirements (IMR) for spread trades, freeing up capital for other opportunities.
4. Lower Transaction Costs
   VIP users benefit from 50% lower fees compared to central order books, significantly reducing costs, especially for large-volume trades.

Strategies Available on Spread Express

Spread Express supports two primary trading strategies:

1. Arbitrage Trading

   • Combines spot trading with perpetual contracts of the same underlying asset.
   • Profits from funding rate differentials.

2. Spread Strategies

   • Basis Trading: Spot trading paired with delivery futures.
   • Delivery Spread: Trading between perpetual contracts and delivery futures, or between delivery futures with different expiry dates.

Arbitrage Strategy: Capturing Funding Rates

How It Works:

• Funding rates align perpetual contract prices with spot prices. Positive rates mean longs pay shorts; negative rates mean shorts pay longs.
• Traders profit when funding rates outweigh transaction costs.

Example:

• BTC Funding Rate: Negative

  • Sell spot BTC, buy perpetual contracts to capture funding fees.
  • Funding fees are credited every 8 hours.

👉 Check Funding Rate History

Case Study:

• Sell spot BTC at 27,000 USDT, buy perpetual at 26,978 USDT (22 USDT spread).
• Net funding fee earned: 357.9 USDT.

• Close positions at a 10 USDT spread:

  • Total Profit: 477.9 USDT (minus fees).

Why Use Spread Express?
Guaranteed spreads eliminate uncertainty, ensuring predictable profits, especially for large orders vulnerable to slippage.

Spread Strategies: Basis and Delivery Spread

1. Basis Trading

Logic:

• Exploit price discrepancies between spot and futures markets.
• If futures price > spot price: Short futures, long spot.
• If futures price < spot price: Long futures, short spot.

Case Study:

• Sell BTC futures (28,250 USDT) and buy spot (28,000 USDT) at a 250 USDT spread.

• Close at a 5 USDT spread:

  • Profit: 245 USDT (minus fees).

2. Delivery Spread

Logic:

• Trade futures with different expiry dates to hedge or profit from price convergence.
• Bullish: Buy near-term futures, sell long-term futures (if spread narrows).
• Bearish: Sell near-term futures, buy long-term futures (if spread widens).

Case Study:

• Buy June BTC futures (28,500 USDT), sell September futures (29,000 USDT) at a 500 USDT spread.
• Scenario 1: Spread narrows to 200 USDT → 300 USDT profit.
• Scenario 2: Spread widens to 800 USDT → 300 USDT loss (hedged vs. outright position).

FAQs

Q1: What is the main advantage of Spread Express?
A: It eliminates leg risk and guarantees spreads, ensuring precise execution and predictable profits.

Q2: How does Spread Express reduce trading costs?
A: VIP users enjoy 50% lower fees compared to standard order books.

Q3: Can I use Spread Express for hedging?
A: Yes! Strategies like delivery spreads allow hedging across futures contracts with different expiries.

Q4: Is Spread Express suitable for high-frequency trading?
A: Absolutely. Its low-latency execution and liquidity make it ideal for arbitrage and rapid trades.

Q5: How are funding rates calculated?
A: Rates are applied every 8 hours based on the formula: Position Value × Funding Rate.

Q6: What’s the minimum capital requirement?
A: No fixed minimum, but portfolio margin modes optimize capital efficiency.

👉 Start Trading on Spread Express

Final Thoughts

Spread Express revolutionizes spread trading by merging efficiency, cost savings, and risk mitigation. Whether you're arbitraging funding rates or executing complex spread strategies, its guaranteed spreads and low fees empower traders to maximize returns while minimizing uncertainty.

Key Takeaways:

• No leg risk: Simultaneous execution of both legs.
• Lower costs: 50% fee reduction for VIPs.
• Higher capital efficiency: Reduced margin requirements.

Ready to optimize your trades? Dive into Spread Express today! 🚀