Arbitrage trading attempts to generate profits by leveraging the price gap between crypto exchanges.
Unlike the traditional equities market, where stocks are listed on a single exchange, crypto, including BTC and ETH, are listed on hundreds of different exchanges. Because the order book is not shared across these exchanges, there is a price gap between exchanges that Haru Invest aims to leverage for stable profits regardless of price volatility.
For example, let's say the price of BTC is $60k at Exchange A and $59.9k at Exchange B. Purchasing one BTC on Exchange B at $59.9k and selling one BTC on Exchange A at $60k at the same time generates a marginal profit.
Generally, the higher BTC's price volatility, the higher the exchange price gap. This kind of trading — which requires meticulous tracking of prices across many exchanges — is difficult to do manually by humans, so an automated trading program is used.
When we launched in August 2019, we thought the price gap between crypto spot exchanges would run out quickly. That is why we have been developing strategies based on arbitrage trading. We are generating stable profits for investors through an advanced form of arbitrage trading between crypto futures exchanges by leveraging the price gap in the perpetual futures market and using various indicators pointing to the gap in the market.