Virtual currency hedging arbitrage
in addition, we need to meet the two conditions of good liquidity and low transaction cost
therefore, the most suitable one is: USD EUR JPY aud GBP CHF CAD, in which the prices of any three currencies are compared with each other
then put it into practice. The internationally popular algorithmic trading and arbitrage hedging are dominated by big investment banks, which rely on the computing power competition of computer groups and even servers. Some investment banks even spend a lot of money to move the whole company close to the exchange in order to pursue a little advantage in network speed. The EA you studied is the most rough, backward and simple algorithm. It really has no future.
In short, the principle of brick Arbitrage: buy low and sell high, buy money from the place with low price and sell it at the place with high price, that is to earn the price difference of different platforms
but there are three risks in moving bricks:
A. time difference of currency transfer: it takes a certain waiting time to pick up or deposit the currency, so it may miss the best trading time
B. currency price fluctuation: if the currency price fluctuation is relatively large and the process of moving bricks has not been completed, the price difference has disappeared
C. platform problems: some trading platforms may shut down services from time to time, or even run away
principle: carry out brick arbitrage on two platforms at the same time to avoid the risk of "time difference of currency transfer" and "currency price fluctuation"
before moving bricks: the brick moving platform must support the same currency transaction, and the brick moving platforms must be able to transfer currency to each other
Step 1: price difference calculation. There are handling charges for currency trading and currency transfer, so you have to calculate the cost according to your own funds. Only when the price difference reaches how much can it be profitable to move bricks
Step 2: simultaneous operation. Buy BTC on the low price platform and sell BTC on the high price platform. At this time, the number of BTC holdings remains unchanged and the number of usdt increases You need to pay attention to transaction fees.)
Step 3: balance funds. It is difficult to predict which platform has a lower price and which has a higher price e to the price difference. Therefore, the two platforms that move bricks need to prepare usdt and BTC. When the price difference appears, it is convenient to move bricks There are also handling charges for cross platform currency transfer.)
the above is the principle and steps of risk-free arbitrage using BTC and usdt. It also has a big name: quantitative hedging. The fundamental purpose is to earn usdt, not BTC
You can take a closer look at this: Web linksbecause of the rapid development of virtual money market, arbitrage is very difficult.
1. The reason is that only big funds can have considerable income, and only big funds can arrange deposits in various accounts. Buy this box and sell that one. You can refer to the previous use of Alipay (balance treasure) transfer does not require fees, because Celestica's large amount of funds stored in various banks, the daily customer hedging results. And this kind of business can only be completed with large capital
2. Speed. Arbitrage opportunities are fleeting, so only fast can seize the opportunity. The reason why Everbright's ETF was able to arbitrage before, and after oolong, it was able to inject so much capital into the market in a short period of time. Without it, it is only quick. It is said that in order to compete for this kind of safe arbitrage means, the competitors have reached the point of "competing physical distance".
1. Generally, the securities trading of the announced merger and acquisition companies takes a long time interval, which may be as long as several months. In stock exchange M & A, risk arbitragers usually long the stock of the acquired company and short the stock of the acquired company; In cash M & A, risk arbitragers seek the difference between acquisition price and target company price
. 2. Futures arbitrage refers to the use of the relevant market or the price difference between the relevant contract changes, in the relevant market or the relevant contract to trade in the opposite direction, in order to make a profit in the favorable change of the price difference. If there is arbitrage by using the price difference between futures market and spot market, it is called cash arbitrage. If there is arbitrage using the price difference between different contracts in the futures market, it is called spread trading
3. Foreign exchange arbitrage: at present, the main popular arbitrage transaction in the market is actually a kind of arbitrage transaction. Carry refers to the use of foreign currency savings rate differences between currencies to earn higher interest income. They mainly buy high interest rate currencies and sell low interest rate currencies to earn overnight interest. The currencies used for buying are mainly Australian dollar and New Zealand dollar in high interest rate currencies, while the currencies sold are mainly Japanese yen and US dollar in low interest rate currencies
4. Credit card arbitrage: many people have credit cards, but they only know how to consume with credit cards, but they don't know that there is a huge arbitrage space for credit cards. In the early development process of P2P platform, credit card can be used directly for investment. There is a huge arbitrage spread. Of course, it is forbidden to use credit card directly now. But we can still use the interest free period of credit card loans for investment arbitrage
5. Virtual currency arbitrage: when many people know about bitcoin, the price of bitcoin once reached a high of 6000 yuan, and they have missed the best time for investment or speculation. However, the prices of various virtual currencies on bitcoin trading platforms are quite different, which gives arbitragers more arbitrage space
there are two kinds of arbitrage, one is risk-free arbitrage, such as the year when stock index futures are just listed. Why no risk? Because if the price difference does not return to reasonable, the profit after the hold to maturity delivery will still be zero. The other is statistically significant Arbitrage (such as statistical arbitrage based on Cointegration) and arbitrage based on fundamental analysis (such as instrial hedging). In fact, this kind of arbitrage has a high risk. Most of these transactions are not psychologically prepared for delivery, or can't lock in the risk through delivery at all, Once the black swan event in Statistics (some small probability events are not accidental), the risk is relatively high
therefore, the key to arbitrage is to conct in-depth research on yourself, understand the logic of the spread and the game when the spread changes.