XMombo Spot-Futures Arbitrage Bot
XMombo charges 20% of the profit from the spot-futures arbitrage bot
The highly volatile market in cryptocurrency gives most investors a high-risk and high-return investment impression. It’s normal to see a coin surge up to 50% and then head to a 50% correction on the next day. So lots of people are using Arbitrage bot to catch these volatile. In addition to the spot market, lots of exchanges also offer perpetual futures contracts that allow traders to use up to 125x leverage, making the cryptocurrency market even more volatile.
On the other hand, the inefficiencies between each market give us plenty of opportunities to arbitrage. It’s easy to reach 25%~75% APR with XMombo arbitrage bot from these inefficiencies.
What is Spot-Futures Arbitrage Strategy?
Hold a short position in the perpetual futures market while holding the same amount of position in the spot market. Arbitrage with a market-neutral position and receive the funding rate every 8 hours.
With the historical data, it’s steady and almost risk-free to arbitrage from the funding rate.
Spot-futures arbitrage is a simple strategy that traders could do it manually, but it’s better to use a tool for opening positions and closing positions due to the volatility.
What are the risks for Arbitrage Bot?
There’re some risks to perform spot-futures arbitrage manually : (1) You’re not able to decrease your position in the spot market while the auto-deleveraged happen to your futures position. (2) The price surge rapidly and you got liquidated on your short position cause you’re not able to close your futures position in advance.
To eliminate the above risks, XMombo provides a bot for spot-futures arbitrage : The bot will detect both your position in the spot and futures market and maintain a market-neutral position even the auto-deleveraged (ADL) happened.