A brief description of the process
Inter-exchange arbitrage is a trading strategy that is based on the price difference of the same asset(s) on various exchanges. Arbitrage opportunities take advantage of the inefficiencies of the market, for example, in the backlog of the reaction of certain exchanges to a drastic change in the value of an asset, or a big difference in spread at different exchanges. In addition, arbitrage opportunities open
up in the event of a price difference on an asset obtained through a chain of purchases and sales via intermediate assets. In this case, the difference in prices during the passage of the entire chain accumulates and becomes a significant amount, which can reach up to 1-3% on the crypto-currency market. Such arbitrage opportunities exist for a very short time, and a trader who bids using arbitrage strategies is constantly searching for them.
What are the difficulties exactly?
implementing arbitrage strategies at crypto market involves a number of technical complexities that requires a top-notch and super secure technical execution to get a positive result. Let’s name a few here:
1. Having deposits on several major exchanges (the more sites are covered, the better)
2. Availability of specialized software that monitors arbitrage opportunities
3. Having specific hardware (specially allocated and properly configured servers, minimum ping, etc.) and software that integrates exchanges interacting with them.
All transactions must occur with a minimum delay in relation to each other. Also, the risk of technical errors, failures and delays should be minimized, as it can destroy the profit from the arbitrage transaction.
The question arises — what is the capacity of the arbitrage opportunities? What amount of funds is needed to reduce the profitability of this activity to the amount ofcommissions for orders execution? These questions do not have a simple answer, asit requires confidence in fixing all the chains at all the exchanges. Such a guarantee cannot be provided by any software (as well as the fact that there was the chain that had time to be traded out until the software found it). The trend of the market is thefollowing: the number of crypto-exchanges and cryptoassets is constantly growing and this growth is much faster than the inflow of new funds to the market. As a result,
the arbitrage market will expand and the availability of an automated mechanism for searching and executing such opportunities is an excellent chance for low-risk earnings on a volatile crypto-market.
ONE PLATFORM. ALL YOU NEED.
Trade any crypto asset at best rates by cross-exchange
arbitrage chains in a single-window interface
Arbidex is a trading platform that connects major exchanges within a single-window interface.
The app is connected to the exchanges using an API interface, receiving and analyzing up-to-date data: it scans asset prices on each particular exchange in real time.
Arbidex allows users to trade via one platform account across all the exchanges at one time. This is done through corporate accounts that are used directly for trading on specific exchanges. The use of corporate accounts also offers users an additional advantage – reduced trading commissions: the minimum fees are 0.05% for “ultimate” users.
Exchanges & Currencies
Arbitrex are expanding the list of supported exchanges and currencies: our developers test various exchanges to connect with, and analysts are in search of currencies that combine volatility and liquidity in order to implement it on our platform and arbitrage chains.
By choosing the most stable exchanges and currencies, Arbidex is able to provide our users with maximum profit.