Futures arbitrage requires a solid understanding of how exchanges and futures contracts work. For effective trading, it is important to know how to navigate the interface and use the key tools provided by the exchange.
Let’s review the main elements you will need for successful futures arbitrage using the interface of the exchange Bybit as an example.
However, all exchanges have a similar interface — once you understand how it works on Bybit, you will be able to navigate any other exchange as well.
4.1.1 SPOT TRADING SECTION
To access the spot trading section, simply hover your cursor over the “Trade” tab and select “Spot Trading”:
Reminder: spot trading is a type of trading where assets are bought and sold immediately at the current market price.
4.1.2 FUTURES TRADING SECTION
To access the futures trading section, click on the “Derivatives” button and select “USDT Perpetual Futures”:
As discussed earlier, futures trading is a type of trading based on predicting the price movement of an asset in one direction or another.
To find the required trading pair where an arbitrage opportunity has appeared, use the search bar by hovering over the corresponding icon and entering the altcoin ticker:
NOTE: make sure you have selected the exact futures section where the spread has appeared. In most cases, we will work with Perpetual futures contracts and less frequently with the pre-market.
If you are working with a futures account for the first time, you will need to fund it.
To do this, go to the account section and select derivatives from the asset dropdown list:
Once there, click on “Transfer” and select:
Transfer from the spot account to the derivatives account;
Specify the amount you want to transfer;
And click confirm:
After completing the steps described above, your futures account balance will be credited with the specified amount.
Get a subscription and access the best tool on the market for arbitrage on Spot, Futures, CEX, and DEX exchanges.
