London, England, June 24, 2022 (GLOBE NEWSWIRE) --
Rubot.info is ready to launch the Arbitrage Smart Contract to its crypto traders and investors. Arbitrage trading is a low-risk trading method that capitalizes on market price disparities. It usually entails purchasing and trading the same asset (such as Bitcoin) on several exchanges. Because the price of Bitcoin on Binance and another exchange should theoretically be the same, any discrepancy between the two is potentially an arbitrage opportunity.
By introducing Arbitrage Smart Contract, Rubot is offering a systematic trading method. However, it has primarily been used by substantial financial firms. Bitcoin traders may benefit from the democratization of financial markets by cryptocurrencies.
Considering the era's need, Rubot established Arbitrage trading on its platform that functions as a business method and tries to make money by simultaneously buying and selling an item in two different markets. It is most typically done when trading identical assets on other markets. Because these financial instruments are essentially the same asset, the price difference between them should be zero. The problem for an arbitrageur is not just detecting but also trading these pricing disparities fast. Because other arbitrage dealers are likely to recognize the price difference (the spread), the profit window usually closes quickly.
Furthermore, while arbitrage trades are typically low risk, the rewards are generally low. As a result, arbitrage traders of Rubot must move swiftly and have a considerable amount of funds to make it worthwhile. Although at Rubot, arbitrage trading is technically considered, it is by no means risk-free. There would be no return if there were no risk, and arbitrage trading is no exception.
Execution risk is the most significant risk connected with arbitrage trading. When the spread among prices disappears before traders can complete the trade, they will end up with negative and insignificant returns. Slippage, delayed execution, unusually high transaction fees, a rapid surge in volatility, and so on could all be factors. Rubot tries its best to avoid these negative factors throughout the process.
Liquidity risk is another significant concern when it comes to arbitrage trading. Users trading leveraged instruments, such as futures contracts, could face a profit target if the business goes against them. As is customary, appropriate risk management is essential. Therefore, Rubot is here to solve all the problems and eliminate the possible risks related to Arbitrage Smart Contract.
Visit its official website for more information and further updates.
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