Beauty of Arbitraging

 

Profit in trading is necessary for a trader even the gain is small. Profit is still a profit. That is why many traders find different ways to gain by trading through reading charts and making fundamental analyses.

But does reading charts and fundamental analysis is the only way to gain on a volatile market? On this blog, Readers will learn how to spot good assets to hop in by using different exchangers to gain maximum profit and lesser loss.

This blog will use tokenized stock assets from Bittrex and Binance for more specific and easy to understand how arbitrage work. Since Binance open their market for tokenized stocks.

No account? Register here:

Or use 

Binance Code upon registration:  XQZSKRCF

Bittrex Code upon registration: J2B-JQG-2H4

The Risk Arbitrage trading

Risk arbitrage trading is the buying of assets from an exchanger platform to another different exchanger platform. It is the manner of concurrent buying and selling opportunities for the same asset for multiple platform usage.

Why buying and selling from different platforms? Assets like tokenized stocks have different prices from different platforms. Sample in the photo below. The above photo were from Bittrex and the other came from Binance.

Although they have different base pairs, their base pair price discrepancy is nearly zero. With this kind of trading strategy. Maximum gain can be attained with minimum risk of losing money.

Because Binance Exchanger is new on listing tokenized stocks. Trader can gain maximized profit if he or she opens an account on Bittrex where tokenized stocks are already listed.  New listing on Binance may dramatically affect the price of newly listed assets because of its high trading volume within the platform. 

Trading from tokenized stock markets is still bounded by US trading hours. Still manage the risk on trading and always put stop loss. It is necessary for a trader to lessen the loss and maximize profit.

Happy trading and investing.