Bitsgap Arbitrage is a unique service available for all users. It has been used for advanced and professional traders before, but we have implemented an optimized system where even a beginner can start making profits with no risk. We are analyzing the best deals based on your available balance and price difference among all your linked exchanges.
This chapter will guide you through interface which will help you to read the information about happening arbitrage opportunities
Columns and grid properties
Profit - Potential profit based on your current accounts balance after executing buy and sell orders from both exchanges. Taker's commission is always taken into account.
Buy Market - The exchange where a buy order is filled. For instance, if currency pair BTC/EUR is selected, then a request to purchase BTC for EUR will be sent.
Pair - A currency pair used in this transaction.
Sell Market - The exchange where a sell order is filled. For instance, if currency pair BTC/EUR is selected, then a request to sell BTC for EUR will be sent.
Status - Status tells you if a given arbitrage deal is possible or not. If you have both API keys linked to Bitsgap platform and there is enough Base & Quote currency available for Buy and Sell Markets balances, then you will notice Trade button. Otherwise, the system will leave you a message of any necessary steps required to complete this deal.
Volume - Volume shows the amount of the base currency you can buy and sell at the same time. The transaction size is calculated based on your maximum available balance both for base and quote currencies.
Trade with partial balance
Balance to be used feature is a tool allowing you to specify how much of your current balance should be taken into calculating and executing arbitrage deal. The selected percentage share is applied both for Base and Quote currency.
Example: You have 0.2 BTC and 2 000 USD available on your Kraken and Bitstamp accounts in 50/50 proportion. The price for BTC is 5 000 USD on Kraken and 5 2000 on Bitstamp There is an arbitrage opportunity between these two exchanges, but for your own reason you do not want to spend all your bitcoin for arbitrage trading. Therefore, the position is open and you do not want to miss it out. You decide to use 25% of your Kraken and Bitstamp balance to take this opportunity. What will happen next?
Result: By selecting 25% balance to be used for arbitrage trades and clicking the Trade button, you send a request to both exchanges to buy BTC and to sell BTC but only using 25% of available funds.
- The buy order is sent to Kraken: Purchase 0.05 BTC for 5 000 USD (we are using 25% of your USD funds available on Kraken which is 250 USD)
- The sell order is sent to Bitstamp: Sell 0.05 BTC for 5 200 USD (we are using 25% of your BTC funds available on Bitstamp which is 0.05 BTC)
After a successful arbitrage deal your total account value will be as follow:
Arbitrage deal types
There are two types of arbitrage deals Bitsgap is using for calculating opportunities:
All Arbitrage deals show a combination of one buy and one sell order and calculate potential profit from two transactions completed simultaneously. It is the best option for beginners and practicing arbitrage traders requires minimum 15 USD balance to start trading on a price difference.
Grouped Arbitrage deals analyses numerous open positions for buy and sell orders, and collects them in a bundle of multiple transactions. Grouped arbitrage deas are more accurate and generate more potential profits. Thus it requires a significant amount of available balance. It is the best option for professional arbitrage traders and fonds
The next chapter Making your first trade will explain you the limits of arbitrage deals and how to perform your first trade