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Arbitrage

ArbitrageBitstamp is an ideal platform for ARBITRAGE. Because they are slow, and are as they have answered, a "Matching service," as you can see one could buy LTC or any number of altcoins on Bitstamp, using it as a launchpad, and migrate it to, in this example, coinbase pro. It's a sad state of affairs for Bitstamp these days, but presents a great opportunity as they often lag as many as 20-30 points behind coinbase, even in this confusing, Bitcoin dependent market. Bitcoin needs to rise or fall, or this confusion seemingly will keep alts rangebound and price dependent on BTC movement. Winter is coming in my opinion. Namaste'
COINBASE:LTCUSD
by Cryptocautious
6% Arbitrage Opp on Nano now!, Buy Kucoin & sell on BinanceBINANCE:NANOBTC 6% Arbitrage Opp on Nano between Kucoin and Binance.. Arbitrage Alerts in real-time Disclaimer regarding investment decisions and trading Decisions to buy, sell, hold or trade in currencies, securities, commodities and other investments involve risk and are best made based on the advice of qualified financial professionals. Any trading in securities or other investments involves a risk of substantial losses. The practice of “Day Trading” involves particularly high risks and can cause you to lose substantial sums of money. Before undertaking any trading program, you should consult a qualified financial professional. Please consider carefully whether such trading is suitable for you in light of your financial condition and ability to bear financial risks. Under no circumstances shall we be liable for any loss or damage you or anyone else incurs as a result of any security, currency, trading or investment activity that you or anyone else engages in based on any information or material you receive through Arbiswap or our Services.
N
by wealthjustin
1
How to Arbitrage Cryptocurrency & Why They Occur During Pumps?During the 2017 Bull run I started noticing arbitrage spreads occurring quite often in cryptocurrency markets. I was able to stumble upon a few of these as they occurred making an average of 20% or more each trade in just minutes. I knew I missed a lot and I wanted to get alerted to these in real-time which is why I created my own arbitrage platform. Here is a strategy I would like to share with everyone... Be Ready at all times having money in BTC or USDT ready at all times on the exchanges you are comfortable arbitraging on sign up for an arbitrage platform that alerts you to the occurrences ( Arbiswap ) once you are alerted to an arbitrage opportunity act on it as fast as you can Follow this quick checklist: act on HIGH VOLUME arbitrage opportunities (unless you are investing small amounts which is supported by the current volume) act ONLY on arbitrage opportunities based on profit potential of 13% or more MAKE SURE WALLETS ARE ONLINE on both exchanges buy as many coins you desire from the exchange it is selling much cheaper while paying attention to make sure the spread still exists by checking the exchange it is selling for at a much higher rate once you are done accumulating, transfer to the other exchange and sell as fast as you can From my experience I was able to transfer most ERC20 coins in 7-10 minutes time and sell them pretty fast (40k worth) over a few minutes time. Some coins are known to transfer fast like XRP , ETH , Nano , etc. so it is wise to be familiar with coin transfer times. There are some like BTG that transferred on average of 15 minutes to 30 minutes although one time it took 3 hours but I was still able to make at least 18% or more every arbitrage opportunity I ever acted on. Let's talk about why arbitrage opportunities occur? A seasoned trader will understand that most coin prices begin to rise when breaking certain resistances and trend lines. News will sometimes create arbitrage opps but they are mainly caused by huge money being pumped into coins by institutions. They are usually the start of bull runs. Last December we seen that most coins chart displayed extremely bullish patterns. Once they broke resistance it usually rockets up to a higher price and usually starts forming a new pattern that will allow the price to go even higher. The amounts of cash flowing into coins at a much faster rate creates a spread between exchanges which creates an arbitrage opportunity. Let me debunk the misconception that one whale can eat up all the volume for himself using an arbitrage opportunity that happened just yesterday A few months ago ADX/BTC was pumped up over 65%. It was trading for $1.19 on Bittrex and $1.47 on Binance which is around a 25% or more price spread between the exchanges. The 24 hour volume on ADX/BTC on Binance alone was over $51 million dollars most of which was traded during the arbitrage opportunity. That is a ton of volume for literally thousands of people to make a profit from by swapping these coins between exchanges. I usually trade around 40k at a time during these occurrences and I have no trouble getting my orders filled in minutes while transferring and selling on the other exchange. Arbitrage opportunities are common before the start of and during bull runs Arbitrage occurrences usually occur at the beginning of bull markets and we are beginning to see them occur more and more on high volume exchanges. This is how we see the market caps rise and prices of coins go up so quickly... Today there was another that occurred for ticker DNT/BTC this time it had even more volume roughly $70 million dollars worth on Binance alone. Unfortunately I was watching the movie "A Quiet Place" at the movie theatre so I wasn't able to act on the alert I received. Feel free to ask me whatever questions you wish! Here is the arbitrage platform I use and here is a medium post that goes a bit deeper medium.com I obviously am quite familiar with arbitraging and it is the only type of day-trading I personally do so let me leave this disclaimer...
Education
by wealthjustin
LRCBTC ready for another 80%Loopring has had an amazing run up the last 2 weeks with a 100% increase from the bottom of 920 sats on 11/20. Does this coin have another leg up? LRC continues to stay above the red 100 day MA on the hourlies during this leg up. Price range is staying within the channel that I have drawn. So why do I think this coin has a little more steam left? I believe it will make a move similar to BQX. Similar conditions are present with LRC. 1. Bithumb just announced that they will be opening deposits/withdrawals on their site for loopring. 2. There is a 4:1 price difference between the Bithumb price and Binance price. The current price on bithumb is .32 usd. 3. A long in the tooth rally with most traders thinking this leg has reached its end with 3 attempts at breaking above resistance failiing. Traders are ready to go short then experience a squeeze. This is a pretty good arbitrage opportunity for any Korean trader to take advantage of that will keep this rally going. Coupled with the low cap and volume this coin might really pop once the deposits open. Obviously the arbitrage opportunity will be short since parity will be reached rather quickly after deposits are opened. Please comment or hit the like button if you agree. *all ideas are for my own record keeping.
Long
by J167889
Visualizing the Bitmex ArbitrageA handy trick for visualizing the arbitrage opportunity between Bitmex quarterly futures and spot is to input the equasion (XBTZ18-XBTUSD)/XBTUSD*100 into Tradingview. (You can substitute XBTZ18 for another quarterly symbol). I believe all account types can view this on the Daily resolution. Unfortunately historic data for all past quarterly futures contracts are not available for comparison but in the past the spread has become quite large and attractive for a "Cash and Carry" trade. At the high of 2017 the quarterly futures traded at an extreme of 21% premium. Shorting the quarterly futures when there is a positive premium at 1:1 leverage creates a virtual "stablecoin". If the value of Bitcoin goes up the short position goes down but at the same rate thus the nominal value of holdings remains the same. The inverse is true in a bearish market. As expiration approaches the two instruments will come to settle at parity meaning the premium received when the trade was entered will be realized. Not accounting for exchange default this is essentially a riskless trade. The risk profile does NOT work to the upside as if one is in a long futures position not only does the trade lose value but also the value of Bitcoin itself; losses are compounded. This trade is best used as a hedge and situational arbitrage.
X
by norok
EURUSD vs XAUUSD - hedged arbitrage statistical analysisHi guys, here i am gonna show you a great strategy that have earned me some good money along my trading journey. As u have probably noticed it consists two parts - hedging and arbitrage. With simple words you trade two(or more - portfolio) instruments which have good correlation(arbitrage). The first one you trade on the short side and the second one on the long side (hedge). This strategy is particulary great on the stock market, because most of the stocks play a big role in a certain sectors (INDICES/ETF's) and they move "together" - they have big correlation. The reason i show you this example ( EURUSD vs XAUUSD ) is because i assume that most of you don't have the required ammount of money which is needed on the stock market (50k as a minimum) and that's why you will find it more suitable if the case is on the CFD's markets, i.imgur.com - this pictures shows a regression model where Red line is the daily close price of EURUSD , the Green line is the daily close price of XAUUSD *(multiplicated) by a coefficient and the Blue line is the difference between both of the values. As u can see when the Blue line is the upper/down boundries, the Green and the Red line start to get close to each other which means that they start to close the gap. I am not gonna explain more, but the idea here is that you have two options to trade this case: 1)with a long perspective (2 weeks - 2 months at least) 2) 1-2 days to 2 weeks. No matter which case you choose u have to Short EURUSD and Buy XAUUSD if u believe that the gap will be closed. I advise you to paper trade it the first time and to see what will happen in the next days. Caution !!! - for every 1 unit bought of EURUSD the appropriate ammount of XAUUSD shorted should be 0.9 units. With simple words, if i buy 1000 units of EURUSD i should short 900 units of XAUUSD .
by Konstantin_Georgiev
1
RISK ARB OPPORTUNITY: SKY BUYOUT There's been another big deal developing ($29-30B) so I figured I'd post another arbitrage, in this case, 'risk arb' or Merger Arbitrage. Fox needs to raise its offer of 10.75 pounds per share for the 61 percent of the British pay-TV company it doesn’t already own, in order to challenge Comcast’s 12.50 pounds per share bid. Comcast, which already won U.K. approval for its Sky approach, has a deadline of Friday to put the 22 billion pound ($29 billion) proposal to Sky shareholders under U.K. takeover rules....The tussle over Sky is part of a wider bidding contest between Comcast and Walt Disney Co. for the bulk of Rupert Murdoch’s media empire, as each tries to scale up to take on streaming competitors Netflix Inc. and Amazon.com faculty.chicagobooth.edu www.newyorkfed.org Although it's formally an arbitrage strategy, purists would argue that it's not a pure arbitrage as it incorporates speculative aspects and is not as riskless as other strategies such as convertible arbitrage which fully hedges deltas: The main basis in a stock-for-stock acquisition revolves around the idea that the target's stock will often trade at a lower market price compared to the exchange ratio that will apply once the deal is closed. Traders will purchase the target's stock and receive an excess value of the acquirer's stock when the deal is closed. To hedge risk, traders will short the same number of the acquirer's shares based on the exchange ratio. The objective is to capture the spread between the target's share price at market and the closing price based on the exchange ratio set by the acquirer. Spreads can be between 5-10% (median) for deals that close upwards of 55 days. Unlike other arbitrages, risk arbs can be done quite easily, but like all other strategies, can also become more efficient and complex if done professionally. Risk arb funds can also be good diversification for a portfolio as they often generate superior risk adjusted returns in poor markets. www.bloomberg.com
SEducation
by UnknownUnicorn2421992
Crypto Exchanges: Profitable CorrelationsComparing Price Movements of one Crypto-Currency on multiple Crypto Exchanges can be very profitable! My approach is to compare the Movements on an Exchange with high Volume with the price Movement on an Exchange with low Volume. The Hypothesis is that if the Price on the low Volume Exchange is falling, while the Price is rising on a high Volume Exchange, the Price on the low Volume Exchange will follow the direction of the high Volume Exchange. I proof this Hypothesis with backtests and I already found some really nice Correlations and here is another one: If BTCUSD is falling on the 1H chart on HitBTC (low Volume) while XBTUSD is rising on BitMEX (high Volume), the probability is high, that the Price will start to rise on HitBTC too. There are only a few Trades a year that match the criteria, but more than 80% are profitable with a low Drawdown. Here's the Screenshot with the backtesting results (TradingView might not show the Output of the Strategy Tester when I publish a Idea of the Type "Education")
BEducation
by TradingClue
Idea for arbitrage tradingHello everyone! Hope that this idea will be helpful for you. All we know that listing of ETC will be expected on Coinbase soon. There has been news about listing recently and the rate has increased. On the exchanges with big turnover the rate is growing faster than with less one. That is why there are holes between exchanges. If you check less popular exchanges you’ll find orders on the big volume of selling. During this day I’m following exchanges which are connected with BibitBot.com and there are orders for selling for lower price than on Binance. As soon as the difference has reached even more than 1.5% I’ve started to get notifications every 3 seconds about buying on some exchanges and selling it on Binance. That what I’ve done. I think you’ll agree with me that it’s hard to follow and monitor exchanges, but with the help of BibitBot this work has been perfectly done. As soon as there is an increase of the rate I can get notifications. 15% is not really bad. Most of all I expect the listing on Coinbase. As it’ll be started I’ll be the first who will get to know about it, because there will be huge holes, as it was with TRX when it was its listing on Bittrex. I took this chance too. This is an idea for your trading if you’ve donated in ETC on the long period. While the rate will be volatile, you can earn without risks more than 50% with BibitBot.com. By the way, if you’re interested in bot, I can share with you my free using coupon for one month (so you’ll have 2 month for free). Promocode is XEN9
Long
by xenon9
Mispricing in correlated coins? Ripple and StellarRipple and Stellar Price Correlation is 88.8%. (+) Ripple and Stellar Returns Correlation is 49.86%. (+) Wanted to check out if there is any mispricing to profit from by simply betting on the one that diverges. However as we can see from the chart, there is no clear indication on who is the market leader (the one that determines the overall trend) and both Stellar and Ripple take turns to lead the movements. The extent of the movements is also unclear. Maybe we can see it on a lower timeframe? (But it shouldn't matter actually) Conclusion: Cannot really profit from mispricing since there is no clear indication of who is the leading the trend and converges back to the norm by either coin. Furthermore, correlations are not causations. Sometimes it may that A and B are correlated but actually its C that is causing A and B to be highly correlated. Therefore there is a need to check on a whole range of other correlations between as many assets (other coins, especially the largest ones like bitcoin and ethereum, and prob USD) Lastly, a correlation study is historical and as we all know in this industry that past returns are no guarantee of future success as factors causing correlations can change over time.
KRAKEN:XRPUSD
by BlackPapaya