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πŸŸͺ BID-ASK Strategy

Bid Ask is an inverse Curve distribution, typically deployed single sided for a DCA in or out strategy. It can be used to capture volatility especially when prices vastly move out of the typical range.

Updated over 3 weeks ago

πŸŸͺ BID-ASK Strategy

  • Range: V-shaped, liquidity at far ends of price range to capture swings

  • Best for: Professional LPs and institutions chasing higher yields

  • Risk: Higher, requires active management

Target Users:

  • Professional market makers

  • Volatility traders

  • Advanced users

Characteristics:

  • Minimal liquidity at center prices

  • Captures large price swings

  • Earns from volatility premiums

  • Requires active management

When it is generally used:

  • Expecting significant price movements

  • Want to capture volatility

  • Have professional trading experience

  • Comfortable with complex strategies

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