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Crypto Basis Trading - Basis Markets Trade Engine - Educational Content #5 - 'Efficient Execution' - YouTube
Channel: basis.markets
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welcome to this video um i've not put
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the picture of me in the bottom right
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hand corner or top right hand corner on
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this video because uh we're gonna need
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the whole screen for what we're about to
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do um there's probably the the number
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one thing that comes back um for me for
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questions is around getting in and out
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and the liquidity available uh in some
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of the defy uh projects and some of the
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coins um so
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i
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i i've not had any issues and moving you
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know fairly decent amounts
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um but a lot of people are having issues
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and i think that's because just a lack
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of understanding of of how the order
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book works uh how to actually go
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manage the spread that you you're
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basically you're buying spots selling a
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purple selling the per buying spot you
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you so this video is to show you you
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know um trade by trade we'll do it all
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live
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and
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how to go about doing that and how to
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not basically splash the order book and
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make a mess of it i see some absolute
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shocking
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spikes on uh like this on uh on this
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charts which is just horrific uh
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order management um so but i i'm also
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very aware that
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um that's because people aren't used to
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it so um
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something to we'll keep the ftx window
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open but something to bear in mind is
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for this process we're going to be using
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uh guan tower it's free to download and
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if and it's really really simple to be
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able to set up for your uh
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on ftx you just go to your apis and set
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up a new quant tower api okay
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um
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i have to make sure i cloud out those
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apis
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actually now you can't see the secrets
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fine um the
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so yeah really good really simple once
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you've got that set up it's a couple of
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things
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to to note is when you set up the the
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dom in the settings make sure you go
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down and add in a hundred levels of
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depth which is here
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um and on the on the on the purp chart
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and the on the spot chart make sure you
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had an overlay which is the opposing one
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so you can see here the price of of the
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perp versus the price of spot and the
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price of spot versus the price of perp
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okay
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one other thing to keep in mind
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is the
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keep open
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the ftx window so
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because
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whilst your position down here in the
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bottom right hand corner will appear for
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the perp it doesn't
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for the spot because it's it's not it's
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this is tracking derivatives so you've
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got to know how many you've got to be
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buying or selling on the on the spot
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side um just so you don't end up with
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too many fills on one side now um
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let's let's get straight into it
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what many of you used to be doing is
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either hitting the market order which
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you're paying for it's really key that
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you're starting to use
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um
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not just market orders but using limit
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orders
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you can see as well today look at this
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there's a little bit of activity going
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on here so this this this should be
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quite fun because there's some interest
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um
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and um
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the
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the the the key thing is to try and use
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limit orders
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um uh unless there's some other
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liquidity that's appearing which does
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appear to be here at the moment um but
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you gotta remember you're paying for
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market orders um so let's what we're
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going to do is i in this in this account
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i'm using i don't have any assets or
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anything at all it's just just got some
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cash in it so we're going to need to buy
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some spot
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step and we're going to sell some um
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some purp
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um so
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what i'm gonna if i end up start leaning
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on this on this uh perp side first it's
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gonna end up filling this guy um but
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that's just the way it is at the moment
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so what we're gonna do we'll start with
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stack up
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you can see it's filling him here like
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he's getting filled because as i push
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down the perp side of the market
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he just got 5000 given to him here so
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we're going to sit bid underneath all of
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these
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all right and we're just going to use
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the part to push the market down
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okay so we've now layered the book
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pretty hard on the on the cell side um
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and we're just we're basically just
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going to wait here and see how we're uh
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um how this
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will move down we don't mind selling the
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part because
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we want to be short the perp anyways
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that's okay if we get paid here it's
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fine it looks like with this this
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there's this 31 000
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to go here which is quite interesting um
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one of the things to bear in mind here
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so i always check is make sure the gap
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between the perp and the spot doesn't
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doesn't get too much because that's you
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you've got to be very mindful of that so
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now just to kind of recap is that the
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limit bids on the spot side there's
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limit offers on there on the perp side
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so right now especially if you've got
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ftt state if you get traded on you're
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not actually paying anything and also
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um you're getting traded on at best
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price and thirdly um if you actually got
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more ftt state you actually make money
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when people trade on it with you because
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you're taking your fee
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um so here we go i started to get some
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now let's rebuild these back up
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so
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we just managed to get now this is the
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reason why i keep this open we just
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picked up 6 000 step down here because
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there's no other mechanism down here of
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knowing how much i've got hold off okay
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so
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we're going to lean on
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lean on this uh purple offer here
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which we've done 21 000 now
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then we're getting them here on the bit
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now on this side so we need these
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so we've done 15 000
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here's the bids
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slightly behind
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okay we'll rebid here we'll beat this
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back up
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i'm on the offer here getting paid here
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as well i've done 32 000 on the offer
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rebid this back up
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still getting paid on this offer here
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i'm 40 000 now
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we'll do a hundred thousand and stop
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just then it just helps everyone see
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what's going on 50 000 on the bid so far
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here
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we've done
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seventy nine thousand so i want twenty
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thousand more we've done a hundred
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thousand step
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all right we're going to bid the perp up
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a little bit because we need to lean
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into that perp a bit
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so i'm still getting these now
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on the on the spot side then 84 000.
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can see 85 000 we need to read that that
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bid you're you're hearing is just my
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it's just a particular order being
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filled
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um
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so we've got 85 000 on the bid here
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let's pull these up pull what we need to
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do now is try is is buy some more
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uh spots so we've we've got 60 000 gone
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here 80 000 on here
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right so i'm getting lifted on the purp
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offer which is good we've got to get
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that gone
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so it's catches up so we've got 70 on
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the offer here
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70 000 gone so far
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we've got more to go we'll join that
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offer we've got to get that loaded up so
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we need 85 000 still on the bid i've not
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picked anything else up yet on the on
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the on the spot side
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so what we're going to do is we're going
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to pull this off
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pull this bit sorry
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okay
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and we're going to just keep pumping
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this
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so we basically got 25 000 left we want
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to get logged out on the offer
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and we want to try and pick up
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15 000 on this on the bid side here now
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we've got enough to start layering the
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block on the top side as well now so we
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can start collecting these i mean i'm
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happy to pay that four and a half
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thousand there but i will just we'll
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just see if we can
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lean on this a little bit as well if i
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cancel that it will push it down and
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he'll go offered so someone might offer
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for 4k i'm gonna push this off
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right
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so i'm gonna cancel that bid
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so there's probably an offer worth five
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thousand sitting inside of 80 here which
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is really just perfect for us we'll just
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load up here
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right here we go
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there we're just taking that there you
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go
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we're on 80 000
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i got someone's paid me for 5 000 here
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on this offer on this squeeze down
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there we go
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that's good now i'm getting lifted on
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this perch side off for now which is
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great we've got another 5 000 to go
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there you can see it look getting sold
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here
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so i use the counter here on the ftx
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side to
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to look at how that uh the offer goes
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the key thing what we need to be getting
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in now is more on this on this bid side
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here
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on the spot over here
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we're looking all we're looking good for
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the pub
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there we are
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you can see sometimes just takes a few
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minutes but we hardly touch the market
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you know we we've
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you know we've sold so far eighty-five
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thousand
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well we're ended up getting 10 000 back
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but 85 000 sold already we haven't moved
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the market tick
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so i see people moving like 5 000 and
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they're moving the market like three
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percent because they're just hitting
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market orders all you're doing is giving
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jump trading money all day long
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i'm wondering why you've got you know
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profit gaps
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so i'm getting these now which is what
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we want we'll reload here
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sometimes it's worth putting a little
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gap in here when you're controlling the
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book
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because
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it makes if they're only people are
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leaning on an amount of liquidity and
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they're having an overall amount that
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they're calculating as the total book
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depth here so we're getting given now
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which is good
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there we go
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the offer on this perp side which is
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what we want
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and then we've nearly equalized now
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we're at 83 000
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spot which is here and we're 81 000
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on the uh
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um on the perp we haven't even moved the
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market tick
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and we've i've done 25 000 value
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here we go
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it's just you
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you can't just kind of splash the book
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as it's known and just whack
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market orders in this is what this
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craziness is here this is just people
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just
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you're just giving money to jump trading
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all day long um and if you just just
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control the book a little bit
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and you can get the amounts you need to
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get done so there you go we're 83.9 on
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the perp
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and we're at 83.2 on this which is now
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we'll just cancel all the orders
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i cancel all the orders here
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and there you go
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[Music]
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there's no regulations in uh you
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you know any rules goes um so there you
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go it's just 25 000 equivalent 85 i
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thought it was gonna be a hundred
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thousand i wouldn't realize how low
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steps got
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um and uh so 25 000 in and out
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um and i would have even got paid on all
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those fills so not only that i've
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actually earned money on all those fees
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it fills
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so as people are trading with me i've
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just you know it's probably made me two
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three hundred dollars uh and actually
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just you know in and out the key is
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now we've got assets that we can put
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into the d5 uh pool
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and we haven't created a ridiculous
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amount of movement in the market so the
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objective has been met
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um cool that was it that's hopefully
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that people understand what's what's
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going on there is you know you're just
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you've got to remember is that the
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market makers are
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are always looking to actively rebalance
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their book they don't want the full
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delta risk of of you know longer load of
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perps or short load of perps or longer
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load of spot they want to be offsetting
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and you just drive the price to where
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you want to balance it in between so
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there you go
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um
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actually we haven't moved the market
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we've made a hundred bucks here and i've
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probably about not quite 100 bucks in in
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fees getting paid
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but there you go um i hope that helps
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and
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good luck
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