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Crypto Arbitrage Spot and Futures Strategy +$450 in 3 days

Crypto Arbitrage Spot and Futures Strategy +$450 in 3 days
Leo
07/08/2024
Authors: Leo
#Screener

Spot + perpetuals strategy arbitrage



In this case, I will show you how to arbitrage using the spot + futures strategy.

This is the main method of futures arbitrage. The idea is that you use a screener to find a deal in which you buy a coin on the spot and take a short position on futures. A mandatory element is that the futures price must be higher than the spot price. And earnings are generated due to price convergence.

The futures screener showed that there is a spread for the SILLY coin between the spot of the HTX exchange and the futures of the Bybit exchange.

Crypto Arbitrage Spot and Futures Strategy +$450 in 3 daysCrypto Arbitrage Spot and Futures Strategy +$450 in 3 days

I did not buy from the market, but placed orders to open a short position at $0.338 and $0.3384, and on the spot I will buy after filling orders on Bybit at approximately $0.333. 

(0.3380 + 0.3384)/0.333 = 1.5% spread.

You also need to remember about the high financing rate. For example, right now it is 0.287%.

Crypto Arbitrage Spot and Futures Strategy +$450 in 3 days

2 orders were closed at $0.338 for 100,000 tokens.

Crypto Arbitrage Spot and Futures Strategy +$450 in 3 days

And now I place orders to buy on spot at a price that is favorable to me.

Crypto Arbitrage Spot and Futures Strategy +$450 in 3 days

Next, an order at $0.3384 was done.

Crypto Arbitrage Spot and Futures Strategy +$450 in 3 days

And I immediately place a new order.

Crypto Arbitrage Spot and Futures Strategy +$450 in 3 days

I have a 812k tokens on HTX and 960,000 tokens on Bybit (short-position). Therefore, i need to increase a position on HTX.

Crypto Arbitrage Spot and Futures Strategy +$450 in 3 days

Crypto Arbitrage Spot and Futures Strategy +$450 in 3 days

In a falling market, you first need to open a short position, then buy on spot. And in growing, it’s the other way around.

One of the orders was closed.

Crypto Arbitrage Spot and Futures Strategy +$450 in 3 days

The price began to rise sharply and I decided to place another order on Bybit:

Crypto Arbitrage Spot and Futures Strategy +$450 in 3 days

I placed an order at 0.03472 and it was executed almost immediately. The spread turned out to be 1.2%.

Crypto Arbitrage Spot and Futures Strategy +$450 in 3 days

And now we wait for the remaining orders to close:

Crypto Arbitrage Spot and Futures Strategy +$450 in 3 days

I work through placing orders not only to catch a good price, but also to save on commissions. When you place an order rather than buy from the order book, you are the maker, and such orders are subject to lower commissions.

Crypto Arbitrage Spot and Futures Strategy +$450 in 3 days

For example, on the HTX exchange I have the eighth level in the VIP program, this allows me to significantly save on commissions + the commission per transaction is even lower if I act as a maker.

You can also read our previous case study: Futures Arbitrage is the simplest type of arbitrage!

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