AFTER THIS LESSON
You will be able to
- Separate a market observation from a trade instruction
- Understand the Short-expensive / Long-cheap structure
- Know which risks remain in a two-leg position
What counts as a signal
IXOR matches compatible markets for the same asset, reads executable price boundaries, and estimates their relative dislocation. A signal captures the data state at a specific moment.
- Exchanges are independent: books, liquidity, and order flow differ.
- The price can change immediately after the message is produced.
- The service does not place orders or confirm that both legs will fill.
The futures–futures structure
The more expensive perpetual market is considered for the Short leg and the cheaper market for the Long leg. Leg notionals are matched to reduce net directional exposure.
- Funds are pre-positioned on both exchanges.
- An on-chain asset transfer is not part of this route.
- The same contract count does not always mean the same notional.
What neutrality does not solve
Two opposite positions reduce sensitivity to the overall price move but preserve execution, liquidity, funding, margin, exchange, and delisting risk.
- One leg may fill later or only partially.
- The spread may keep widening.
- One exchange may change the contract or halt trading.
PRACTICE
Model check
Exchange A is priced at 102 and Exchange B at 100. How should a neutral structure be built, and what must be checked before entry? Do not use the word “profit.”
? Show answer
Answer: Open a Short on Exchange A at the higher price and a Long on Exchange B at the lower price, matching notionals after contract multipliers. Then verify executable bid/ask, depth, fees, funding, margin, contract identity, and risks. This describes a structure; it does not promise an outcome.
Lesson checklist
- I can explain why a signal is not a recommendation.
- I understand the purpose of both legs.
- I can name at least three remaining risks.
Common mistakes
- Treating every positive ROI as a ready opportunity.
- Matching contract counts instead of notional.
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