Author

Topic: Calendar Spread Arbitrage Delivers Returns for OKEx Customers (Read 122 times)

sr. member
Activity: 376
Merit: 251
What's with these newbies saying? praising and saying mixed compliments.

Your strategy is obvious, stop it!
jr. member
Activity: 68
Merit: 1
Good…. Thanks for sharing. I really love this and can bring a lot of value if done right!!!
newbie
Activity: 34
Merit: 0
Honestly, I didn’t like Okex too much but my mindset is changed now.

They have really turned out to be so much better than anyone’s expectation, at least mine.
copper member
Activity: 17
Merit: 0
I believe Thomas Tse, must also know how a person could lose all in few minutes let alone weeks. No question there are rewards but only if you are good enough.
jr. member
Activity: 96
Merit: 1
It’s so lovely to see OKEx coming up with such powerful features. As much as I have liking for it, I really never expected these things 6 months ago.

There has being so much development that has taken place in so short time. So very remarkable this.
jr. member
Activity: 172
Merit: 2
I am not a stranger to Arbitrage trading but man it’s heavily risky and you got to really push hard to master it. So don’t just think about profits from get go or else you are in deep dark zone……
jr. member
Activity: 391
Merit: 1
It’s great but people must understand that it’s not walk in the park and should go ahead only if we are certain not guess work.

I won’t attempt this on guessing at all.
jr. member
Activity: 164
Merit: 2
Hey that’s not new. OkEx started this up long time ago, so this is nothing new. But yeah this is kind of news that deserves a lot of attention and appreciation to say the least…
jr. member
Activity: 89
Merit: 1
Using Okex since early days of my trading career and it has never disappointed me. I just hope it continues on similar pattern ahead too. And I believe it will for sure!!
member
Activity: 258
Merit: 13
I am from Forex world.


Leading global exchange OKEx regularly provides traders who are new to its platform with guidance and advice on maximizing their returns.

In its latest post, the digital asset exchange, which had nearly $890 million in adjusted trading volume in the past 24 hours (according to CoinMarketCap), gives an overview on a strategy commonly used by trading professionals, but one which new traders might not be familiar with.

The strategy allows traders to generate returns based on the spread of futures contracts, not on the price of the asset, and is known as calendar spread arbitrage.

It works by taking advantage of discrepancies in extrinsic values of a digital asset across two different contract expiry dates, to generate a return for traders.

OKEx’s post explains how it works in more detail:

“Futures price reflects the market sentiment of the subject’s price. In the futures market, a different settlement time contract of the same token will differ. For example, at writing time, the mark price of BTC quarterly contract is USD 10,033.3, while that of the bi-weekly contract is USD 9,973.88,” it says.

“To earn a guaranteed profit from calendar spread arbitrage, spread must fluctuate within the two positions the trader takes, which can be predicted from historical trading records.”

In essence, it means the return on investment you can generate relates to the spread of different contracts, not the price of a digital asset.

OKEx suggests traders who are unfamiliar with the method use long arbitrage when the market is bullish, and short arbitrage when it’s bearish, to help deliver the best returns.

The post continues:

“This way, you can guarantee a stable profit despite market volatile. The benefit of a futures spread is that the trader has taken two positions. This allows them to earn a guaranteed profit from the exercise of both positions.”

Arbitrage ins and outs

The exchange is no stranger to helping customers, providing plenty of tips on how to navigate through the technical side of trading and the ins and outs of arbitrage.

Recently, Thomas Tse, the exchange’s Head of Quantitative Strategy, wrote how using an arbitrage trading strategy could deliver returns in a week or less, managing to deliver a yield in less than seven days.

Source of article: https://www.btcheights.com/calendar-spread-arbitrage-delivers-returns-for-okex-customers/
Jump to: