Sundaymail Editor
There is no question that crypto arbitrage has become a popular alternative investment for thousands of South Africans looking to beat the market.
Future Forex has taken crypto arbitrage a step further by unveiling a new dashboard that gives clients a detailed and up-to-date view of their trading history, their account balance, current market conditions, and how much of their foreign exchange allowances have been utilised.
“We launched this new dashboard to give clients greater transparency into how we are trading on their behalf, the current market conditions, and to ensure that they have full visibility on how their investment is performing,” says Future Forex CEO and qualified actuary Harry Scherzer.
“This is the result of months of hard work and surveying clients to see what level of information they wanted.
“Clients appreciate that our service is completely hands-off, but they want to be able to monitor as close to real time as possible, our performance, general market trends, and how much foreign exchange allowances they have remaining for the year.”
“The reason that there are no losses is because we hedge all our trades, which means we will not expose our clients to potential loss. We are fully hedged in terms of foreign currency and crypto price risk.”
Effectively, this means we are able to lock in the profit at the start of the trade, not the end of the trade.
If you were to undertake crypto arbitrage on your own, you would be exposed to possible forex and crypto price risks while the trade is underway, and that can often wipe out any expected profits. We have been able to eliminate those market risks entirely,” says Scherzer.
Under current market conditions, clients can expect to make between 0,7 percent and 1,3 percent net of fees per trade, which – though far lower than the typical arbitrage spread of 3-5 percent a few years ago – is still highly attractive.
“The current arbitrage conditions allow for returns which are still far more lucrative than any investment opportunity with a similarly low risk profile,” adds Scherzer.
Future Forex is able to switch between arbitraging USDC (a US dollar-backed stablecoin) and BTC, depending on which offers the widest profit margin. This allows the company to grab whichever crypto asset offers the widest premium.
The company is also able to take advantage of monetary spikes in the crypto arbitrage premium. – Moneyweb
Online Reporter