How to Use ME10011: Derivatives in Trading

Derivatives data enables funding carry, basis trades, and ETF premium arbitrage.

Strategy 1: Funding Rate Carry (No Leverage)

def funding_carry():
    """Capture funding yield with spot hedge."""
    funding = requests.get(f"{MADJIK_API}/metrics/ME10011/rate/now", headers=HEADERS).json()
    
    rate = funding["data"]["binance"]
    annualized = rate * 3 * 365 * 100
    
    if annualized > 20:
        return {
            "signal": "FUNDING_CARRY_OPPORTUNITY",
            "expected_return": f"{annualized:.0f}% annualized",
            "execution": {
                "long_spot": "BTC on Coinbase or IBIT ETF",
                "short_perp": "BTC-USDT perp on Binance"
            }
        }
    return {"signal": "NO_OPPORTUNITY"}

print(funding_carry())

Strategy 2: ETF Premium Arbitrage

def etf_arb():
    """Trade ETF premium/discount."""
    etf = requests.get(f"{MADJIK_API}/metrics/ME10011/etf_premium/now", headers=HEADERS).json()
    
    ibit_premium = etf["data"]["IBIT"]["premium_pct"]
    
    if ibit_premium > 1.0:
        return {"signal": "SHORT_ETF_LONG_SPOT", "premium": f"{ibit_premium:.2f}%"}
    elif ibit_premium < -1.0:
        return {"signal": "LONG_ETF_SHORT_FUTURES", "discount": f"{ibit_premium:.2f}%"}
    return {"signal": "NO_ARBITRAGE"}

Risk Matrix

For informational purposes only. Not financial, investment, tax, legal or other advice.