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How Hedge Arbitrage Generates Profit

Systematically learn the principles, methods and risk management of cross-currency hedge arbitrage

Under normal conditions, both assets in the pair rise and fall together but at different rates — this spread is where profit comes from.

📊 Example

Long ETH 100U, Short SOL 100U — open simultaneously. One hour later, ETH +5%, SOL +3%, close both. One profits, one loses — net gain: +2%.

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