Market Neutral

Perpetual futures have no expiry. To keep their price tethered to spot, exchanges apply a periodic funding payment, typically every eight hours, between long and short holders. When the market is positioned long, shorts are paid.

By holding spot and shorting an equivalent notional of perpetual futures, a position can be constructed with approximately zero net price exposure that collects funding as its primary return. The economics are the same as a cash-and-carry trade in traditional markets.

The same asset frequently trades at different prices, and with different funding rates, across venues. Wesvel maintains simultaneous connectivity to multiple venues to capture these spreads when they exceed execution and transfer costs.

A subset of our neutral book is constructed to benefit from the magnitude of price movement rather than its direction. These positions are directionally hedged but carry positive exposure to realized volatility, they perform when markets move sharply, in either direction.

This provides a return stream that is uncorrelated with, and often complementary to, the carry book: carry strategies tend to perform in calm markets, volatility strategies in disrupted ones.

Wesvel’s neutral strategies are executed by proprietary systems developed in-house. These systems monitor funding, basis, and volatility conditions continuously across connected venues, size positions against defined risk limits, and manage the hedge as conditions change.

We do not disclose signal construction, parameters, or venue configuration.