We are thrilled to announce the launch of a feature that has been highly anticipated by our community: Shorting Volatility with CVI! This new functionality will be immediately available, adding a powerful tool to your trading arsenal and completing our platform’s offering.
Key Features:
Short Volatility with Up to 16x Leverage: Traders can now take short positions on CVI with leverage up to 16x, providing an opportunity to profit from declining volatility.
Balanced Positions: Our system will ensure that short and long positions are balanced against each other. This means the availability of short positions will directly depend on the number of open long positions, maintaining platform stability and integrity.
Dynamic Funding Fees: To further enhance the trading experience, we have introduced a dynamic funding fee structure. When there is an imbalance between long and short positions, the fees will get more attractive to open a short position. In certain cases, users can get paid to open a short position if there are too many long positions. This incentivizes traders to help balance the platform and ensures fair and efficient trading conditions.
Why Short Volatility?
Shorting volatility can be a strategic move in various market conditions. Here are a few scenarios where shorting can be beneficial:
- Periods of Declining Volatility: When market conditions stabilize after a period of high volatility, shorting can capitalize on the reduction in price swings.
- Hedging Strategies: Traders can use short positions to hedge against potential declines in implied volatility, protecting their portfolios during quieter market phases.
- Leveraged Opportunities: With up to 16x leverage, even small dips in volatility can result in significant gains, offering high reward potential for experienced traders.
How It Works:
Open a Short Position:
→ Navigate to the cvi.finance and connect your wallet:
Select either CVI:
→ Switch LONG to SHORT, fill in your preferred market or limit order size and select the leverage level up to 16x.
→ Ensure that the funding fee and execution gap are within your acceptable range
→ Click APPROVE USDC and approve the transaction first in your wallet.
Then click SUBMIT to open your position,don’t forget it requires additional confirmation in your wallet.
→ Your position will be visible under the Open Positions tab where you can track the progress and manage it.
🚨 IMPORTANT! Monitor Funding Fees & Execution Gap:
The funding fees will adjust dynamically based on the balance of open positions. Stay informed to take advantage of scenarios where you can potentially earn fees for balancing the platform.
The execution gap is designed to safeguard the platform during volatile events and is basically a form of slippage between the raw (which you see) and smooth index (which runs in the background). During volatility bursts or drops, the gap opens which means you incur slippage when you change/open/close your position. Usually it takes 5–10 minutes for the EG to settle down.
Close Your Position:
→ From your Open Positions tab you can close/set TP or SL to your short position as market conditions change or according to your trading strategy. The PnL will be directly reflected in your account.
Join the Trading Revolution:
This new shorting feature is a significant milestone in our mission to provide a comprehensive and versatile trading platform. We believe it will open up new opportunities for profit and risk management, enhancing the overall trading experience for our community.
We invite all traders to explore this new feature and take advantage of the unique opportunities it offers. As always, we encourage responsible trading and suggest familiarizing yourself with the mechanics of shorting and leverage before diving in.
Stay tuned for more updates and happy trading!
We would like to invite everyone to join our vibrant community on our social channels. If you have any questions, our team & community are always on stand-by and eager to assist.
Website: https://cvi.finance
GitBook: https://docs.cvi.finance/
Twitter: https://twitter.com/official_CVI
Telegram (group): https://t.me/cviofficial
Telegram (channel): https://t.me/cvichannel
Discord: https://discord.gg/yuDsy7SM2H
v3 Litepaper: https://cvi.finance/files/CVI.v3.Litepaper.pdf
Whitepaper: https://cvi.finance/cvi-white-paper.pdf
