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Market neutral strategies Meaning

An investment approach that aims to generate a profit regardless of whether the overall market goes "Up" or "Down." The goal is to have "Zero Beta"-meaning your portfolio’s performance is not "Correlated" with the rest of the market. A common market-neutral strategy is the Basis Trade (or "Cash and Carry").

A trader buys Bitcoin in the "Spot" market and simultaneously "Shorts" an equal amount in the "Futures" market. They make money from the "Funding Rate" or the "Premium" between the two prices, without caring if Bitcoin is worth $10,000 or $100,000.

These strategies are favored by "Hedge Funds" and "Institutional Investors" who want "Consistent Returns" with "Low Volatility." While the profits are usually smaller than a successful "Long" bet, the risk of a "Market Crash" wiping out the portfolio is significantly reduced.

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