The core idea of negative profit arbitrage technology is to realize profit through price difference. This trading strategy is called "bear market insurance". The principle is, suppose you have a certain number of BTCs and want to make a profit in the BTC market. If the price of BTC falls in the market, you will suffer losses, so you need to protect yourself from the risk of falling prices. Therefore, you can do two kinds of transactions in the market at the same time: one is to sell a certain amount of BTC, and the other is to buy an equivalent BTC hedge.
In this case, if the price of BTC falls, your selling transaction will gain profits, while your buying transaction will suffer losses. But if the price of BTC goes up, your buying transaction will make a profit, while your selling transaction will lose money. In this case, you can use profits to reduce losses or gain more profits.
This negative profit arbitrage technology may be prohibited or restricted in some markets, so it is necessary to understand and abide by local laws and regulations before conducting such transactions. At the same time, it should be noted that there are certain risks in this trading strategy, and it is necessary to carefully evaluate the costs and benefits to ensure the safety of your investment.