The short sell mechanism is the prerequisite to make Bitcoin a mature investment product. Over five times leverage is the best tool to wipe your Bitcoin. Therefore, the most important when I was designing Bitcoin futures is to control the risks and keep the leverage around 3 times. Besides, fairness is also important which can only be realized among investors. On our platform, Bitcoin is both currency and commodity. And this is how 796 Exchange comes from!
Topic: manual for convenient and quick riskless hedge arbitrage across the exchange (Read 1131 times)
July 05, 2013, 01:24:35 AM
June 30, 2013, 09:41:48 PM
Screenshots look pretty nice.
The arbitrage example you described sound good on paper. But finding a counter party to take other side of a trade isn't always viable. After all, if one side is making sure profit, why would anyone take the other side of a trade?
Edit: Just finish reading the 3rd post. Well, if you are not handling currency, I do not see what value the exchange have over other.
The arbitrage example you described sound good on paper. But finding a counter party to take other side of a trade isn't always viable. After all, if one side is making sure profit, why would anyone take the other side of a trade?
Edit: Just finish reading the 3rd post. Well, if you are not handling currency, I do not see what value the exchange have over other.
Thanks for your reply.
The 796 Exchange has been running for 3 weeks. Now the exchange has greatly increased. You could check orders and the last transaction here: https://796.com/futures/market?lang=en
From what we have known about, an exchange taking Bitcoin as the only currency has its enormous value.
We appreciate your opinion.
June 29, 2013, 09:45:53 AM
Screenshots look pretty nice.
The arbitrage example you described sound good on paper. But finding a counter party to take other side of a trade isn't always viable. After all, if one side is making sure profit, why would anyone take the other side of a trade?
Edit: Just finish reading the 3rd post. Well, if you are not handling currency, I do not see what value the exchange have over other.
The arbitrage example you described sound good on paper. But finding a counter party to take other side of a trade isn't always viable. After all, if one side is making sure profit, why would anyone take the other side of a trade?
Edit: Just finish reading the 3rd post. Well, if you are not handling currency, I do not see what value the exchange have over other.
June 29, 2013, 06:02:03 AM
Differences between 796 Exchange and other margin based trading platform
796 Exchange commits itself to bringing fresh new things to the Bitcoin world, which is completely different from any other exchanges.
Just like what we had explained: 796 Exchange has improved its BTC futures quite a bit comparing to the ordinary futures. Rules are set up to accommodate Bitcoin’s characteristics and market demand. We have enriched Bitcoin investment channels by providing users with two-way leveraged trading services.
796 Exchange creates a relatively plain Bitcoin futures trading method which is closely similar to general trading. Under the premise of ensuring small and middle investors’ interest within the 3 times leverage, it fully grants the users two-way leverage trading rights.
On the other hand, we are trying very hard to provide our investors with secure trading place. We registered 796 Xchange Limited in Hong Kong( registration No. 1911752). 796 Exchange uses the world leading EV SSL certificate issued by VeriSign. Apart from Google authenticator, we have arranged security code backup system saved completely isolated, which prevents users’ fund from illegal withdrawal. We don’t perform any fiat(Hong Kong dollar, US dollar, Euros, RMB) related businesses in case of breaking the laws. We just take Bitcoins as the only circulating currency.
Whether it is the former successful projects or the present 796 Exchange, what we pay more attention is to offer better service, provide users with safe and sound trading platform as well as make fair trading among investors within reasonable regulations. We hope to expand influence with good reputation. So far, we haven’t spent a penny on ads. Instead, we wish to use the money to retribute to our investors. Thus, we made the creative stocks reward grogram to thank those investors for their trust and support at the early stage of our establishment. We are now giving out the total 1 million shares of 796Futures-PD through different channels. You may check here for more details: https://796.com/other/stock.html
Currently, a lot of margin based trading platforms which apply Bitcoin and binary options platforms emerge in the Bitcoin world. Here we will discuss the differences between 796 Exchange and those platforms.
796 Exchange:
Low leverage, two-way trading; trading completes among investors; its profit comes from trading commissions.
Margin based platform:
High leverage, two-way trading; trading completes between investors and the platform; its profit relies on the losses of the investors.
Why high leverage for margin based platforms? 10×, 50×, even 100×, 200×. The only purpose of the high leverage is that no matter how much you gain, the platform will win all out as long as your once wrong operation.
Why do those platforms have to count on agents to dig clients instead of take advantage of good reputation to attract new clients? That’s because the rules of the margin based platforms make only 10% clients profiteer. In such a circumstance that most people take losses, they can not attract customers by reputation but dig by paying agents commission.
The different profit channels demands us to serve better, offer better financial products to increase volume as well as pay for cost and site income by charging commission. As for the margin-based platform which bet with investors, their major task is to form trading rules to cut the risks of making most profiteer and let investors lose “reasonably” as much as they could. So do those binary options platforms, they aim to offer trading methods beneficial to themselves no matter from the perspective of probability or compensation proportion.
796 Exchange commits itself to bringing fresh new things to the Bitcoin world, which is completely different from any other exchanges.
Just like what we had explained: 796 Exchange has improved its BTC futures quite a bit comparing to the ordinary futures. Rules are set up to accommodate Bitcoin’s characteristics and market demand. We have enriched Bitcoin investment channels by providing users with two-way leveraged trading services.
796 Exchange creates a relatively plain Bitcoin futures trading method which is closely similar to general trading. Under the premise of ensuring small and middle investors’ interest within the 3 times leverage, it fully grants the users two-way leverage trading rights.
On the other hand, we are trying very hard to provide our investors with secure trading place. We registered 796 Xchange Limited in Hong Kong( registration No. 1911752). 796 Exchange uses the world leading EV SSL certificate issued by VeriSign. Apart from Google authenticator, we have arranged security code backup system saved completely isolated, which prevents users’ fund from illegal withdrawal. We don’t perform any fiat(Hong Kong dollar, US dollar, Euros, RMB) related businesses in case of breaking the laws. We just take Bitcoins as the only circulating currency.
Whether it is the former successful projects or the present 796 Exchange, what we pay more attention is to offer better service, provide users with safe and sound trading platform as well as make fair trading among investors within reasonable regulations. We hope to expand influence with good reputation. So far, we haven’t spent a penny on ads. Instead, we wish to use the money to retribute to our investors. Thus, we made the creative stocks reward grogram to thank those investors for their trust and support at the early stage of our establishment. We are now giving out the total 1 million shares of 796Futures-PD through different channels. You may check here for more details: https://796.com/other/stock.html
Currently, a lot of margin based trading platforms which apply Bitcoin and binary options platforms emerge in the Bitcoin world. Here we will discuss the differences between 796 Exchange and those platforms.
796 Exchange:
Low leverage, two-way trading; trading completes among investors; its profit comes from trading commissions.
Margin based platform:
High leverage, two-way trading; trading completes between investors and the platform; its profit relies on the losses of the investors.
Why high leverage for margin based platforms? 10×, 50×, even 100×, 200×. The only purpose of the high leverage is that no matter how much you gain, the platform will win all out as long as your once wrong operation.
Why do those platforms have to count on agents to dig clients instead of take advantage of good reputation to attract new clients? That’s because the rules of the margin based platforms make only 10% clients profiteer. In such a circumstance that most people take losses, they can not attract customers by reputation but dig by paying agents commission.
The different profit channels demands us to serve better, offer better financial products to increase volume as well as pay for cost and site income by charging commission. As for the margin-based platform which bet with investors, their major task is to form trading rules to cut the risks of making most profiteer and let investors lose “reasonably” as much as they could. So do those binary options platforms, they aim to offer trading methods beneficial to themselves no matter from the perspective of probability or compensation proportion.
June 27, 2013, 10:58:57 PM
We are planning to open stocks trading in mid July.
And now we are giving out the 1 million shares of 796Futures-PD(Partial Dividend of 796 futures).
To intensify the efforts for stocks reward and give out our 1 million shares(796Futures-PD)as soon as possible, we are now promoting new scheme.
Besides, in order to reduce the circumstances that some users abuse transaction volume to get more shares, we decide to cancel the 10 highest volume traders reward program.
Newest stocks gifting plan:
registration at 796 Exchange, gift 1 share
set security code, gift 1 share
Bind Google authenticator, gift 1 share
For every BTC deposit, gift 2 shares
For every BTC deposit referred by you, gift 1 share
For every BTC transaction in BTC futures trading, gift 1 share
Original account’s stocks reimbursement and double program regarding new stock rewarding:
We will reimburse stock rewards for registration, security code setting and Google authenticator binding.
Double the stocks obtained from depositing, submitting bugs.
For more information, you could visit: https://796.com/other/stock.html?lang=en
And now we are giving out the 1 million shares of 796Futures-PD(Partial Dividend of 796 futures).
To intensify the efforts for stocks reward and give out our 1 million shares(796Futures-PD)as soon as possible, we are now promoting new scheme.
Besides, in order to reduce the circumstances that some users abuse transaction volume to get more shares, we decide to cancel the 10 highest volume traders reward program.
Newest stocks gifting plan:
registration at 796 Exchange, gift 1 share
set security code, gift 1 share
Bind Google authenticator, gift 1 share
For every BTC deposit, gift 2 shares
For every BTC deposit referred by you, gift 1 share
For every BTC transaction in BTC futures trading, gift 1 share
Original account’s stocks reimbursement and double program regarding new stock rewarding:
We will reimburse stock rewards for registration, security code setting and Google authenticator binding.
Double the stocks obtained from depositing, submitting bugs.
For more information, you could visit: https://796.com/other/stock.html?lang=en
June 23, 2013, 10:04:48 PM
Arbitrage trade is actually highly profitable. No risk hedge arbitrage across the exchange!
To put it simply “ arbitrage across the exchange”, there is risk of price of BTC going down in the process of doing it.
796 Exchange makes arbitrage across the exchange more easily. As long as you execute hedge on 796 platform, you will be able to obtain riskless profit.
The BTC price of 796 Exchange is a little bit high, while $7 appeared in Mt. Gox market a few days ago. Cutting fees from both sides and transaction difference, the profit could get to 5% at least.
It is quite simple to achieve this when the price is over 3% more than that of Mt. Gox.
First, selling short 100 BTC at the price of $106 in 796 Exchange for example, you just need to deposit margin for 25 BTC.
Second, buy 100 BTC at the price of $100 from Mt. Gox.
Here finishes one arbitrage and gets 5% profit. When the price difference is close, you may terminate and settle the contract to realize profit. If high premium continues, you may repeat the operation and wait for settlement. (from July, we will carry out weekly settlement)( about settlement: 796 Exchange will cease BTC futures trading from 23:45pm to 24pm on the last business day of each week, during which suspend trading will be executed at the average price showed on Mt. Gox website at 23:50. And all the orders will be settled at that price and all pending orders will not be affected )
If the price in 796 Exchange is lower than that of Mt. Gox, and you have BTC in Mt. Gox, you could also do hedge arbitrage. It is just an opposite process.
All these are really easy!
Brief introduction of 796 Exchange
796 Exchange is established and operated by 796 Xchange Limited (Registration No. 1911752) which is incorporated under the laws of Hong Kong.
796 Exchange is a comprehensive financial website covering futures, stocks, funds, options as well as finance activities related to Bitcoin. We will constantly provide Bitcoin fans with investment channels relating to Bitcoin and promote the Bitcoin application development.
For safety measure, we have used VerSign's EV SSL security certificate, Norton’s safety signature, Google Authenticator together with our exclusive security code protection to prevent users’ fund from fraud to the greatest extent.
Details here: https://796.com/other/about.html?lang=en
BTC Futures Rules:
796 Exchange has improved its BTC futures quite a bit comparing to the ordinary futures. Rules are set up to accommodate Bitcoin’s characteristics and market demand. We have enriched Bitcoin investment channels by providing users with two-way leveraged trading services.
796 Exchange applies floating leverage on BTC futures. Taking BTC as collateral and provide margin trading, when Bitcoin price at $100, buying long corresponds to a 2 times leverage while selling short corresponds to a 4 times leverage. If Bitcoin price exceeds $100, the leverage will be enlarged and when Bitcoin price is less than $100, the leverage will be shrunken.
Margin deposit required for buying long is 50% of the Bitcoin investing in the captioned transaction, and 25% for selling short. Every $1 change in BTC price reflects 0.01 BTC profit or loss. When loss of a transaction reaches 98% of the deposit, the contract will be terminated and settled. (equivalent to $49 drop when buying long and $24.5 rise when selling short).
You may visit here for details: https://796.com/help.html?lang=en
To put it simply “ arbitrage across the exchange”, there is risk of price of BTC going down in the process of doing it.
796 Exchange makes arbitrage across the exchange more easily. As long as you execute hedge on 796 platform, you will be able to obtain riskless profit.
The BTC price of 796 Exchange is a little bit high, while $7 appeared in Mt. Gox market a few days ago. Cutting fees from both sides and transaction difference, the profit could get to 5% at least.
It is quite simple to achieve this when the price is over 3% more than that of Mt. Gox.
First, selling short 100 BTC at the price of $106 in 796 Exchange for example, you just need to deposit margin for 25 BTC.
Second, buy 100 BTC at the price of $100 from Mt. Gox.
Here finishes one arbitrage and gets 5% profit. When the price difference is close, you may terminate and settle the contract to realize profit. If high premium continues, you may repeat the operation and wait for settlement. (from July, we will carry out weekly settlement)( about settlement: 796 Exchange will cease BTC futures trading from 23:45pm to 24pm on the last business day of each week, during which suspend trading will be executed at the average price showed on Mt. Gox website at 23:50. And all the orders will be settled at that price and all pending orders will not be affected )
If the price in 796 Exchange is lower than that of Mt. Gox, and you have BTC in Mt. Gox, you could also do hedge arbitrage. It is just an opposite process.
All these are really easy!
Brief introduction of 796 Exchange
796 Exchange is established and operated by 796 Xchange Limited (Registration No. 1911752) which is incorporated under the laws of Hong Kong.
796 Exchange is a comprehensive financial website covering futures, stocks, funds, options as well as finance activities related to Bitcoin. We will constantly provide Bitcoin fans with investment channels relating to Bitcoin and promote the Bitcoin application development.
For safety measure, we have used VerSign's EV SSL security certificate, Norton’s safety signature, Google Authenticator together with our exclusive security code protection to prevent users’ fund from fraud to the greatest extent.
Details here: https://796.com/other/about.html?lang=en
BTC Futures Rules:
796 Exchange has improved its BTC futures quite a bit comparing to the ordinary futures. Rules are set up to accommodate Bitcoin’s characteristics and market demand. We have enriched Bitcoin investment channels by providing users with two-way leveraged trading services.
796 Exchange applies floating leverage on BTC futures. Taking BTC as collateral and provide margin trading, when Bitcoin price at $100, buying long corresponds to a 2 times leverage while selling short corresponds to a 4 times leverage. If Bitcoin price exceeds $100, the leverage will be enlarged and when Bitcoin price is less than $100, the leverage will be shrunken.
Margin deposit required for buying long is 50% of the Bitcoin investing in the captioned transaction, and 25% for selling short. Every $1 change in BTC price reflects 0.01 BTC profit or loss. When loss of a transaction reaches 98% of the deposit, the contract will be terminated and settled. (equivalent to $49 drop when buying long and $24.5 rise when selling short).
You may visit here for details: https://796.com/help.html?lang=en
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