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Cross Markets Arbitrage Instructions
2021-01-20 08:38

What is it ?

Cross Markets Arbitrage is a commonly used method to absorb profit in the cryptocurrency market. With it, users can make a profit from the price difference among different exchanges and markets by buying low and selling high. The core principle of this feature is based on regression to the mean, also considered as a risk-free arbitrage strategy.

For example, the BTC price arrives at $35200 on Exchange A and $35380 on Exchange B. Usually, profit-seeking users would deposit on Exchange A to buy 1 BTC then transfer it to Exchange B and sell it to take a $180 profit.  Of course, in real trading, a transaction fee will be charged for buying and selling. The inter-exchange price difference must be greater than the sum of the bilateral transaction fees for the user to gain profit.

Bibox supports AI Cross Markets Arbitrage where users only need to enter the API information and the bot will, based on the asset status, identify the profitable cryptocurrency and trading pair(s) to absorb profit from the cross markets price difference. It is worth mentioning that the Bibox cross-market arbitrage bot will automatically detect whether the cross-market spread is greater than the sum of the transaction fees on both sides. The cross-market arbitrage will only be executed when the net rate is greater than 0.


How to use Bibox AI Cross Markets Arbitrage ?

1. Enter Bibox trading bot page:https://www.bibox.com/v2/strategy_bot



2. Choose Cross Markets Arbitrage and click Set up a bot



3. Choose the targeted exchange to conduct cross markets arbitrage



4. There needs to be a certain amount of assets in both your Bibox and the targeted exchange accounts (the major token must be available on both exchanges.)

For example, if you decide to do cross markets arbitrage in BTC/USDT trading pair, you must match one of the three criteria.

① Bibox account has no less than 200 USDT and your Huobi account has no less than 200 USDT in BTC;

② Your Huobi account has no less than 200 USDT and the Bibox account has more than 200 USDT in BTC;

③ Both of your Bibox and Huobi accounts have no less than 100 USDT and more than 100 USDT in BTC simultaneously.


5. Generate API key and secret key (take Huobi as an example)

    1)Click API management in the targeted exchange.



    2)You must enable “read” and “trade” and disable “withdrawal” and IP address (please be noted that the API KEY that is not bound to an IP address is only valid for 90 days, after which you need to generate a new API KEY.)



    3)Take a record of the Access Key and Secret Key.



    4)Enter the Access Key and Secret Key in Bibox cross markets arbitrage setting.



* Premium rate: the net profit rate (deducting the incurred trading fees on both exchanges) of a corss markets arbitrage trade. When there is a right price discrepancy between the two exchanges, the bot will execute the programmed order.

Recommended setting: 0.001 - 0.005


6. Complete the set-up



How do I check my profit ?

Click the bot in progress to view your cross markets arbitrage, in which you will see the set-up time, markets, total profit, and max drawdown.



You can set up a new bot or close one as well.



Characteristics of Bibox cross markets arbitrage

1. Executing buying low and selling high simultaneously to ensure low risks.

2. No manual operation needed once it is set up.

3. Deposit USDT or BTC on both exchanges. Automatically run bot(s) when detecting price difference.

4. The ROI of Bibox Cross Markets Arbitrage is very stable and lower than Trend Trading (CTA) .




You can also contact Bibox telegram admin (@bibox_cs) or join the Telegram group (https://t.me/bibox_trading_bot) for more details.

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