On the evening of January 2nd, AICoin researchers conducted a live graphic and text sharing session on "Stable Earning: An Excellent Coin-based Arbitrage Opportunity" in the AICoin PC-end - Group Chat - Live. Here is a summary of the live content.
I. Detailed Steps for Coin-based Arbitrage
Step 1: Authorize AICoin First
Quick authorization tutorial: https://www.aicoin.com/article/374401.html
Step 2: Open the Section
Step 3: Ensure the Account has Sufficient Funds, and Choose Forward Arbitrage
Step 4: Open the Relevant Arbitrage Combination
- Quickly sort by holding value and find the currency pairs on OKX
- Copy the code below and open it in the browser: https://www.aicoin.app/link/main/quant?tab=quant&actions=[{"dbkey":"btcswapusd:okcoinfutures","market":"okx","side":"sell"},{"dbkey":"btcusdt:okex","market":"okx","side":"buy"}]
Step 5: Open the Arbitrage Combination to Display the Trading Pairs
Step 6: Invest the Amount and Open the Position
Invest 1000u, and the investment will be credited after 23 minutes
Step 7: Obtain Stable Income from Funding Rates
II. Authorize to Conduct Arbitrage Trading by Buying Coins
Step 1: Register on OKX: https://www.iihvvs.com/join/AICOIN20
Step 2: Deposit Coins (Purchase USDT) Tutorial: https://www.aicoin.com/article/369590.html
Step 3: Quick Authorization Tutorial: https://www.aicoin.com/article/374401.html
Check the authorization position under More - Authorization
Select "Add Authorization" and "Quick Authorization" as shown in the image
Complete tasks to receive free AICoin analysis opportunities
Step 4: Open the Arbitrage Combination
Option 1: Search and add
Option 2: Copy the URL and open it in the browser
https://www.aicoin.app/link/main/quant?tab=quant&actions=[{"dbkey":"btcswapusd:okcoinfutures","market":"okx","side":"sell"}，{"dbkey":"btcusdt:okex","market":"okx","side":"buy"}]
Step 5: Choose Arbitrage Combinations with a Larger Price Difference
Step 6: Invest the Principal and Run the Program to Profit
Check the profit situation as shown in the image, with an annualized return of 86%
For more information on arbitrage usage and understanding, you can click the link below to use: https://www.aicoin.com/article/375086.html
III. In-depth Explanation of Arbitrage Trading Principles
1. Concept of Arbitrage Funding Rate:
Funding rate arbitrage, perpetual funding rate arbitrage, refers to conducting two opposite-direction, equal-quantity, and offsetting trades simultaneously in spot and perpetual contracts, with the goal of earning funding rate income in perpetual contract trading.
In simpler terms: there is equivalent income between contracts and spot, one side makes money while the other side loses, both positions are averaged, and then only the funding fee is earned.
If the price difference is reasonable during this process, then the income from the price difference + funding fee income
2. Collection of Arbitrage Funding Rates:
When the funding rate > 0, long positions pay funding fees at settlement, and short positions receive funding fees.
When the funding rate < 0, short positions pay funding fees, and long positions receive them.
Funding fees are generally collected every 8 hours, 3 times a day. The settlement collection time varies for different exchanges. If positions are closed before the settlement time, there is no need to pay or cannot receive funding fees.
3. Key Points of Arbitrage
4. Example Illustration
Now the funding rate for OK BTC perpetual is 0.17%. Zhang San sees that there is still over an hour until settlement, so he decides to settle. At this point, Zhang San judges that the funding fee will continue to be > 0. He goes short on 2 BTC perpetual contracts and simultaneously buys 2 BTC in spot trading.
Therefore, after over an hour of settlement, Zhang San's short position will receive funding fee income of 2*0.17% = 0.0034 BTC.
Because BTC spot and BTC contracts are equivalent, there is no fear of price fluctuations. The price difference covers the transaction fees, and even exceeds the income from the transaction fees.
5. Selection of Arbitrage Opportunities
A. Screening Principles:
(1) Combination with a holding value of over $10 million.
(2) Current fee rate (predicted fee rate) is above 0.03% (expected to recoup expenses within 2 days), the higher the better.
(3) Price difference rate is above 0.05%, the higher the rate, the more floating profit from opening positions.
Coins that meet these 3 criteria are worth our attention.
B. Example Illustration
(1) Open the arbitrage opportunity section
(2) Filter combinations that meet the criteria
First, holding value: 5.29 billion
Next, fee rate: 0.0784%
Finally, price difference rate: +1.2%
If it meets the above three criteria, opening positions can be done.
6. How to End this Forward Arbitrage?
First: When there is no income or need to pay out (funding rate reversal, need to pay funding rate).
Second: Closing the position can realize income from the price difference (closing transaction fee is about 0.15% of the position).
Third: Personal reasons require withdrawing funds.
Closing the arbitrage program is also simple. For example, in the automatic coin-earning program, on the interface -- close the program.
Try it now: Start Binance BTC perpetual arbitrage, earn 27% annualized return!
Unlock more combinations by opening an arbitrage membership. The advantage of arbitrage is stable income and relatively low risk. Click the link below to open and experience: https://aicoin.app/vip/arbtool
Benefit: Authorize FastAPI from OKX to AICoin to receive 10 AI analysis from VIP senior managers.
Complete tasks to receive free AI analysis opportunities
Recommended Reading
Igniting the Market with Inscriptions, Inscription Currency Investment Guide
Great Profits in Bull Market, Tips for Screening Shanzhai Stocks to Help You Easily Profit!
The 2B and 123 Rules Help You Seize the Golden Entry Points for Trend Trading
For more live content, please follow AICoin's "News/Information - Live Review" section, and feel free to download AICoin PC-end
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