What most people get wrong about Delta-Neutral trading

After posting my delta-neutral setup a couple days ago, I noticed a few misconceptions that come up a lot so i will share a few things I’ve learned while testing it.

“Delta-neutral = risk-free”

It’s not because even if your long and short balance out, you still have:

• funding differences between platforms • mark price differences • liquidation risk if one side drifts faster

Most people try to match positions exactly.

In practice, that can lead to: • higher fees • funding bleed

Funding matters more than people think

If you ignore funding, you can slowly lose money even while being “neutral”.

I’ve started paying more attention to:

• which side pays funding • how it behaves over multiple days and not short term

This can make a noticeable difference in longterm imo.

My biggest tip: don’t just use your entire portfolio for the trades. Keep some spare stables for margin in case one side gets close to liquidation.

I use this setup across platforms like Dreamcash and Extended, curious how others are approaching this and have anything to add. Feedback always welcome :)