Spot Perpetual Arbitrage
Learn how to use spot perpetual arbitrage strategy
This strategy looks at the price on the spot connector and the price on the derivative connector. Then it calculates the spread between the two connectors. The key features for this strategy are
When the spread between spot and derivative markets reaches a value above
min_divergence, the first part of the operation will be executed, creating a buy/sell order on the spot connector, while opening an opposing long/short position on the derivative connector.
With the position open, the bot will scan the prices on both connectors, and once the price spread between them reaches a value below
min_convergence, the bot will close both positions.
You will need some quote assets for orders to be opened
Some xDai for gas when using Perpetual Finance connector. See this link for more info.
Hummingbot Gateway if using Perpetual Finance connector
The following walks through all the steps when running the
Enter an exchange you would like to trade on.
Enter the token trading pair for the spot exchange.
Enter the derivative exchange you would like to trade on.
Enter the token trading pair for the derivative exchange.
The order amount for both the orders. Ensure you have enough balance on quote tokens to place orders.
Enter the leverage you would like to use.
The spread required for the first part of the arbitrage to be executed.
The spread required for the second part of the arbitrage to be executed.
If set to True, the strategy will not execute second arbitrage during the funding period until funding payment is received. If set to False, second arbitrage will be executed depending of the funding payment time.
Percent buffer added to the spot exchange price to account for price movement before trade execution.
Percent buffer added to the derivative exchange price to account for price movement before trade execution.