Flash loans are a DeFi feature that limits a traderâs risk, while improving the possible upside of their trades. They allow traders to take out uncollateralised loans to increase the payout of a singular trade. You can borrow cash without surrendering your collateral., mostly because flash loans are paid back right away, in the same transaction in which they are taken out. Q3 2020 hedge fund letters, conferences and more How Flash Loans WorkHereâs how it works. Clever arbitrageurs, for example, borrow money and pay it back immediately, taking advantage of incredibly short term price fluctuatio…
