Short term quantitative digital currency arbitrage
move bricks arbitrage, because there will be some differences in the price of currencies in major exchanges. Move bricks arbitrage is to earn the difference. Now the income of indivial move brick arbitrage is not very ideal, and the operation is more
if someone comes to you and says that they can help you carry bricks for arbitrage, try not to believe it, and try to keep your money in the place you can control
if you want additional income, you can choose the financial management of major platforms. There's a push in the exchange or in the wallet.
in the past decade, the trading volume of international foreign exchange market has increased rapidly, and the daily trading volume is as high as US $6 trillion. One important reason that can not be ignored is arbitrage trading arbitrage trading uses a large number of trading models to create arbitrage space through algorithmic trading, which also makes it more difficult for ordinary investors to carry out foreign exchange operations. However, if we can understand some basic thinking of arbitrage trading, it will also be of great help to foreign exchange investment
How to use arbitrage in leveraged foreign exchangearbitrage trading strategy is very effective in leveraged trading. Generally speaking, under the 1:100 leverage (most ECN foreign exchange brokers provide this leverage), arbitrage trading strategy will earn 200% income from the 2% interest margin in one year
but it should not be ignored that arbitrage trading strategy still has many shortcomings< this strategy is mainly applicable to market stability, and there are no preconditions for significant changes in interest rates the fact is that if the price of high-yield currency falls, the foreign exchange loss of swap will exceed the profit. Moreover, even if overall economic sentiment is positive, there is no guarantee that the situation in the issuing countries will be concive to growth. In addition, the arbitrage trading strategy is not suitable for scalping traders and intraday traders, and the most suitable one is band traders
it is most noteworthy that the mode of "converting RMB into US dollars and then into Japanese yen" is very difficult for retail traders e to the rapid change of transaction cost and price spread. But don't be discouraged, you can make profits in another way - arbitrage in this case, you just need to find the right foreign exchange dealer
the so-called "position interest" refers to the overnight interest generated by buying and selling currency at the settlement time. take AUDUSD (Australian dollar / US dollar), which is usually used by ordinary traders for position interest arbitrage, as an example. On a dealer platform, the overnight position interest of buying a hand of AUDUSD is + 6.4 US dollars, that is, the dealer pays you 6.4 US dollars; The overnight interest rate for selling a hand of AUDUSD is - 8.8 US dollars, that is, you pay the dealer 8.8 US dollars. The standard contract for foreign exchange trading is a 100000 base currency, such as AUDUSD. That's right. The currency in front of us is AUD, and the Australian dollar is the base currency
if you want to carry interest, you need to find dealers who meet the following conditions:
1. Spread as low as possible: the so-called "spread" is "the difference between the buying price and the selling price", which is your transaction cost. The figure below shows AUDUSD. AUDUSD purchase price is 0.933-selling price is 0.93918 = 0.00015. This is a five digit quotation, that is, a trader with five decimal places. We call the spread 15 points. There are also four traders who quote, so it can be said that the spread is 1.5 points
The point difference ofAUDUSD is 15 points, which is very low. Generally, the point difference of AUDUSD is about 20 points. Another thing to note is that the spread is usually divided into fixed spread and floating spread. Fixed spread means that the spread value is fixed, while floating spread means that the spread value changes in a region. It is recommended to select a dealer account with fixed spread
2. Leverage as high as possible: the so-called leverage is the magnification of capital. Traders provide leverage ranging from 100 to 1000 times. If you don't use leverage, you need a $100000 (usually converted into US dollars) for a first-hand AUDUSD contract. If you use 100 times leverage, you only need a $1000 margin; If you use 300 times leverage, you only need a $333 margin
note: as long as we don't abuse leverage and use a large proportion of leverage to build as many positions as we can, then the size of leverage has little to do with risk
Compulsory position closing rate should be as low as possible:the so-called compulsory position closing rate is that a margin rate is lower than the minimum value. If it is lower than the minimum value, the position contract is the same as not closing the position because of insufficient margin. The common compulsory closing rates are 100% and 20%. Of course, there are 80%, 30% and 0%, depending on the dealers
4. Convenient fund transfer: this not only affects the profit margin, but also affects the fund security
5. The difference of gold exchange between the platform's in and out is low: this also affects the profit margin
1. The common arbitrage methods are as follows:
EA trading
hedging trading
2 Generally speaking, currency pairs for foreign exchange arbitrage trade have the following two characteristics:
1. The interest rate difference between the two currencies is very large.
2. The currency is in the upward trend.
for example, the interest rate of the Bank of Australia is 4.5%,
while the interest rate of the Federal Reserve is 0.5%,
that is to say, there is a 4% interest rate difference,
increased from 0.4800 to 0.9800,
increased by 5000 points,
in an obvious rising period, which is more suitable for arbitrage trading. Please refer to Huilong investment website for more information
arbitrage trading mainly depends on the fluctuation of interest rate, which is also the focus that investors need to pay attention to. Central banks of all countries make monthly interest rate adjustment decisions, which is related to the specific profitability of investors. Therefore, investors who do arbitrage trading should pay attention to the interest rate decisions issued by central banks of all countries in real time, While mastering arbitrage trading, we should have a general understanding of the market, which also has certain advantages for traders to analyze the market