1. What is FTX arbitrage?
FTX Arbitrage is a quantum arbitrage platform under the FTX exchange. The essence of arbitrage is to profit from the imbalance of asset prices in different markets;
2. Which team developed the FTX arbitrage (quantum arbitrage)?
FTX Arbitrage was developed by a team led by FTX Exchange CEO Sam Bankman-Fried; but FTX Arbitrage operates independently!
3. What is Arbitrage (quantum arbitrage)?
Arbitrage is a strategy that exploits price differences of the same asset in different markets. For this to happen, there must be at least two equivalent assets with different prices. Essentially, arbitrage is a situation where traders can profit from an imbalance in asset prices in different markets. The simplest form of arbitrage is to buy an asset in a market with a lower price and sell it in a market with a higher price.
Arbitrage is a widely used trading strategy and probably one of the oldest in existence. Traders who participate in this strategy are called arbitrageurs.
This concept is closely related to market efficiency theory. The theory states that for a market to be fully efficient, there must be no arbitrage opportunities—all equivalent assets should converge to the same price. Price convergence in different markets measures market efficiency.
Both the Capital Asset Pricing Model (CAPM) and Arbitrage Pricing Theory explain that arbitrage opportunities arise from mispricing of assets. If the opportunity is fully exploited, the prices of equivalent assets should converge.
A simple example
When Warren Buffett at 6, he saw that he could profit from arbitrage. He would buy 6 packs of Coca-Cola for 25 cents, then sell each bottle of Coca-Cola nearby for 5 cents, earning 5 cents per pack. Young Warren Buffett saw that he could profit from the difference between the price of a six-pack and what people were willing to pay for one.
A very common example of an arbitrage opportunity is a cross-border public company. Assume that an individual owns shares of ABC, a company listed on the Canadian TSX, that is trading at C$10.00. Meanwhile, ABC shares traded at $8.00 on the New York Stock Exchange. The current CAD/USD exchange rate is 1.10. Traders can buy shares for $8.00 on the NYSE and sell them for $10.00 on the TSX. That would give him a profit of $1.09 per share.
Necessary Trading Conditions
Arbitrage may occur if the following conditions are met:
· Asset price imbalance: This is the first condition for arbitrage. Price imbalances can take many forms:
1. The same asset trades at different prices in different markets.
2. Assets with similar cash flows trade at different prices.
3. An asset with a known future price that is currently trading at a price that differs from the expected value of future cash flows.
· Simultaneous trade execution: Buys and sells of the same or equivalent asset should be executed simultaneously to capture price differences. Transactions are subject to significant risk if they are not executed at the same time.
Although this is a simple strategy, but due to it rarelity, investment funds cant rely entirely on this strategy. This fact can be explained by the difficulties associated with exploiting usually short-lived situations. With the rise of electronic quantum trading, where trade orders can be executed in fractions of a second, mispriced asset discrepancies can occur in a fraction of the time. In this sense, the rapidity of transaction speed increases the efficiency of the market.
In addition, equivalent assets at different prices typically exhibit small price differences that are less than the transaction costs of carry trades. This effectively negates the arbitrage opportunity.
Arbitrage is often exploited by large financial institutions because it requires significant resources to identify opportunities and execute trades. They are often executed using complex financial instruments, such as derivative contracts and other forms of synthetic instruments, to find asset equivalents. Derivatives trading often involves trading on margin and the large amounts of cash required to execute the trade.
4. What is the prospect of quantum arbitrage?
The technical team has nearly 10 years of experience in quantum arbitrage management, and the benefits FTX Arbitrage has created for the general community are considerable. Quantum arbitrage trading is only one of the sectors. FTX Arbitrage has also issued its own mining function. The mined TP coins can be directly exchanged for USDT on this platform. Of course, you can also keep it. After each round of our public curtain ends, the market value will increase continuously, and the TP coins you collect will bring you higher income!
5. System Security
FTX Arbitrage adopts SSL encryption technology and uses Amazon cloud servers in all aspects to ensure system security in all aspects. 24-hour round-the-clock monitoring of the platform system allows quantum investors to automatically encrypt sensitive information when conducting membership management, personal account management, purchase of quantum machine products, deposits, withdrawals and other operations involving private information Hacker attacks and invasions ensure the safety of investor accounts. At the same time, VPN technology is enabled to physically isolate users, and a high-availability load balancing cluster system is used to monitor system conditions in real time. Website data has real-time hot backup and off-site disaster recovery, encrypts user sensitive data, and strictly protects user privacy. Eliminate all attacks with meticulous code inspection.
6. Fund security
FTX Arbitrage guarantees the capital security of quantum investors to the greatest extent and ensures that the funds of quantum investors are safe and worry-free; the withdrawal speed will not exceed 12 hours, and it can be converted into legal currency of any country in the world anytime, anywhere. Quantum investors can query the details of the capital account in real time. Quantum investors implement strict capital management processes and improve and secure income and expenditure systems to ensure that all funds are infallible.
7. Privacy and Security
FTX Arbitrage provides dual protection from system permission setting and management system, abides by relevant laws and regulations, implements hierarchical management of system permissions, protects user privacy, and strictly performs confidentiality obligations. Personal disclosure of user information in any form (except as otherwise provided by laws and regulations) absolutely guarantees user privacy.
8. What are the advantages of FTX Arbitrage?
FTX Arbitrage has a professional technical team, leading the world in quantum speed and response speed.
For example: The current US BTC price is 60000 USDT;
The current BTC price in Japan is 60010 USDT;
Then our quantum robot will respond within 1 second, make a large number of purchases in the BTC trading market in the United States, and transfer the purchased BTC to the BTC trading market in Japan for selling, thereby earning the difference in price;
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