Author

Topic: How to calculate Ethbull arbitrage? (Read 85 times)

jr. member
Activity: 48
Merit: 4
February 04, 2020, 08:09:01 AM
#4
Is there something wrong with the price it is listed in other exchange?

That's the question, how do you calculate if there is a mis matched price or not?
sr. member
Activity: 1036
Merit: 329
February 04, 2020, 12:35:51 AM
#3
Also, I've noticed that sometimes ethbull moves in opposite direction to ethusd. For instance on binance today ethbull is up 21% but ethusdt is actually very slightly down.

It seems like there might be some kind of huge mis-pricing here that could be arbitraged?
arbitrage? Is there something wrong with the price it is listed in other exchange?
You can only do arbitrage if you think you can earn with a high difference between price to both exchange.
Arbitrage will only work if they think they will be @5% or more gap in different exchange.
jr. member
Activity: 48
Merit: 4
February 03, 2020, 05:57:47 PM
#2
Also, I've noticed that sometimes ethbull moves in opposite direction to ethusd. For instance on binance today ethbull is up 21% but ethusdt is actually very slightly down.

It seems like there might be some kind of huge mis-pricing here that could be arbitraged?
jr. member
Activity: 48
Merit: 4
February 03, 2020, 08:49:30 AM
#1
I have a question about how to figure out the correct pricing for Ethbull which is a 3x leveraged erc20 token.

The description for it reads that it is designed to move 3% for every 1% ethereum moves. I'm looking at the charts for it on tradingview and having a hard time understanding why it moves the way it does.

My question is: How do you determine what the correct price for ethbull should be and how do you take advantage of arbitrage when it is not correctly priced?

For instance, looking at a recent swing on eth shows these prices:

======== ethbull   ethusd
17-Dec   464   122.96
3-Feb   1364   188
      
Ratio    2.94     1.53


In other words from dec 17 to today ethbull increased about 3x and ethusd increased 1.5x. That would mean ethbull moved 2x what eth did, not 3x.

Why is it like that? What is the formula to take a chart of ethusd and plot what the correct price for ethbull should have been?
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