On November 25 at 16:00, AICoin Research Institute will conduct a graphic and textual sharing of 'Bull Market Precise Windfall: Capital Fee Arbitrage, Locking Future Earnings' in [AICoin PC - Group Chat - Live Broadcast], here is a summary of the live content.
Preface:
Today the host continues to share a relatively advanced topic and a high-quality tool: arbitrage.
First, let’s briefly summarize the purpose of arbitrage.
In ancient times, there was a famous proverb that can summarize the essence of arbitrage: you can't catch a wolf without letting go of the child. Since ancient times, people have been aware of the concept of arbitrage.
In the crypto world, especially in the current bull market, arbitrage opportunities are everywhere. We can continuously profit from these opportunities, just like catching wolves and eating wolf meat.
The host will first give everyone homework!
Homework one:
Let's see how the last position selected turned out, do you remember the host's last operation?
Those who watched the host's 20U War God operation last time must know that the host kept suggesting everyone to open a grid.
This is the host's record of opening positions all the way
Currently, it has run into a new volatile space, when it drops you buy the dip, when it rises you profit
A perfect long grid!
Currently, the host's price range is: opening a grid between 95000 and 105000
The fish in this network are all from the host's old high family
This is the tool the host recommended for everyone to use last time: AICoin's AI grid tool
If you think the trend is still rising, you can try a long grid
If you think the trend is volatile, you can try a neutral grid
The benefit of grids is the ability to enter and exit multiple times, automatically buying and selling
Making money while sleeping, making money while playing games. Life is multi-threaded!
Neutral grids are suitable for volatility,
Previously, AICoin did a series of grid explorations, you can find some tutorials in the news section~
The above is homework one.
Homework two:
The host's second homework is again given to everyone
20U War God homework:
The host selected ETC for opening a position on November 21
Opened 20U, let's take a look and review the position situation
The host's choice at that time was good
Although there is only 20U of principal, it still yielded good returns!
This method of selecting altcoins has been proven effective again!
Then the host has closed it this time, homework is done! Closed, the host's choice this time was not bad~
The host's second homework this time, let's review it.
The operation method still relies on AICoin's statistical data, focusing on AICoin's homepage ranking data
Find the homepage - Popular list - Position volume
Filter for large position volumes, positive position changes, and cryptocurrencies with not too high 24-hour increases.
Then this coin is a quality coin!
In fact, it's easy to understand:
● Large position volume: capital is being focused
● Changes in positions are all positive: indicating that the capital in positions continues to grow
● Not too high increase: indicates early stages of increase
At this time, it is the best time for us to take action, let the main force help us lift the sedan.
A student in the discussion area asked how much increase is considered not too high?
High is relative to comparison,
Generally speaking, they are about three to four stories high.
For example, you filter out a batch of coins that meet the criteria,
But if you have limited funds, and can only choose one or two, then choose those with currently the lowest increases, your chances will be a bit greater!
The above is homework two.
Then let's take a look at how capital fee arbitrage works, how future earnings are locked! How many opportunities there are!
Everyone still needs to go through it simply
The basic principle of arbitrage
First, we need to understand how arbitrage makes money
The essence of arbitrage is making money with mathematics
Simply put, it’s about guaranteed profits, earning rigorously.
In fact, the crypto world is a market of games, and everyone's profit comes from the losses of others.
Then arbitrage uses liquidity and trading rules to earn profits in the middle process, making money with mathematics for future gains.
If your funds reach a certain amount, you must learn to arbitrage!
The most basic arbitrage in the crypto world is actually the current wealth management products of exchanges.
Simply put: you deposit funds and use the exchange to lend. Then the borrower borrows money from the platform through collateral.
At this time, the platform, as one of the intermediaries, will liquidate the person borrowing funds before they become insolvent, ensuring capital safety. If the borrower has money to repay, then the interest inside is the share for the capital management person.
This is the first layer of arbitrage model, recommending OK and Binance's wealth management products, such as Yubi Treasure, and some options wealth management, its invention mainly prevents the contract price from deviating too much from the spot price, allowing the contract and spot prices to converge and bind.
Second layer of arbitrage: capital fee arbitrage
Everyone think about it, why is it that even though exchanges have such high interest rates, there are still people mortgaging to borrow coins? What are the borrowers playing?
In fact, a large part is the demand of arbitrage users.
In many cases, you see annualized returns of 20%, 40%, 60% in wealth management on exchanges, and there are people borrowing.
Why? Because many arbitrage opportunities have returns higher than this, so there will be borrowing demand.
In addition, many people, because they hold BTC or ETH, which are relatively difficult to generate returns, still want to hold coins and wait for appreciation
At this time, they will also mortgage BTC or ETH to obtain USDT funds and open arbitrage positions.
The topic has gone too far; the above shows that many people are playing in this arbitrage market, and there are many opportunities.
The reason so many people take the risk of borrowing highly interest-bearing coins from the exchanges is that arbitrage uses mathematics to make money
It can lock in future earnings, using mathematics to calculate whether this loan is worth it.
So, what is capital fee arbitrage?
In spot trading, we need to have coins first before selling.
If the price is high now, and you think the chance of a decline later is greater,
How would you operate when you want to sell?
Then you can borrow spot from the exchange, sell it, and then buy it back after it drops to repay, this is the spot leverage trading model.
Let's continue explaining capital fee arbitrage.
In fact, the capital fee is the transaction rule fee of perpetual contracts,
Its invention mainly prevents the contract price from deviating too much from the spot price, allowing the contract and spot prices to converge and bind.
For example:
If the contract price is particularly high, far above the spot price, at this time, the long party has to pay the capital fee to the short party. This will generate positive capital fee arbitrage, which is also the opportunity we focus on studying today.
If the contract price is particularly low, far below the spot price, at this time, the short party has to pay the capital fee to the long party. This will generate reverse capital fee arbitrage, which involves borrowing coin leverage arbitrage, and the risk is slightly larger than the above positive arbitrage, usually played by professionals in bear markets. We can discuss this later.
Let's take a look at AICoin's client, which is also divided into positive and reverse arbitrage
Here, AICoin has very considerately categorized automatic coin earning models for everyone
This model is very suitable for beginners
Once invested, there's no need to worry
What you need to do is find suitable coins and invest funds~
Does anyone have any principles about arbitrage that they don't understand? If not, I've organized a process for everyone here
You can save this chart, the complete arbitrage process, and what money arbitrage earns.
It can be said that understanding this is truly understanding trading!
Let’s do a simple example:
If you opened a short position of 1 BTC in perpetual contracts, you need to buy 1 BTC in the spot market.
If BTC price rises, this is reflected in your position as the contract is losing, and the spot is profitable;
If BTC price drops, this is reflected in your position as the contract is profitable, and the spot is losing.
From the price calculation formula, it has achieved a break-even point, no longer worrying about the price fluctuations of the coins, and comfortably receiving perpetual rates.
Professional content may be a bit dry, but if you really want to earn clear money, you still need to understand the principles in depth.
You must know that price fluctuations involve capital, and it won't explode~
So how to catch arbitrage opportunities!
Here’s a secret for capital fee arbitrage!!!
Step 1: Filter by annualized returns!
Step 2: Pay attention to position value. The position needs to be greater than 10 million USD
Step 3: Current rate (forecast rate) is above 0.03% (expected to recover expenses within 2 days), of course, the higher the better.
Step 4: Price difference rate above 0.05%, the higher it is, the more floating profit from opening a position.
Currently, ADA and DOGE, etc. are very suitable for opening arbitrage positions
Meets all the conditions mentioned above, everyone can take a look for themselves
Picking up money market!
That's all for today's live broadcast!!!
Thank you all for your attention, stay tuned to our live broadcast
In the bull market, let's explore the market together and find trading opportunities! Use AICoin well to earn a free life
Recommended reading
1. The 50th day of the 20U War God: A new journey for AI grids
2. Market truth: Volume comes first, price comes later
3. Crazy bull! Teach you how to find golden opportunities from corrections
For more live broadcast content, please pay attention to AICoin 'AICoin - Leading Data Market and Smart Tool Platform' section, welcome to download AICoin - Leading Data Market and Smart Tool Platform
