Largest crypto exchange now
offers more than 120,000 active trading strategies, and over 70% of
active Spot Copy Trading Lead Traders have recorded positive
P&L
DUBAI, UAE, May 15, 2024
/PRNewswire/ -- Binance, the leading blockchain
ecosystem behind the world's largest crypto exchange
by trading volume, today announced the launch of Funding Rate
Arbitrage Bot and the full roll out of Spot Copy Trading to all
eligible users.
Binance currently offers on its Trading Bots
Marketplace over 120,000 active trading strategies and continues to
enhance its diverse offering of automated trading strategy tools for users. Automated trading
bots that are highly popular with users include Grid Trading for
Spot and Futures, Rebalancing Bot, Auto-Invest, and Dollar-Cost
Averaging (DCA).
Funding Rate Arbitrage Bot is Binance's first
trading bot that automates a delta-neutral spot and futures
arbitrage strategy, removing the need for users to manually execute
two separate spot and perpetual futures trades. The Arbitrage Bot
aims to allow traders to earn funding fees by opening a perpetual
futures position and hedging it by taking an opposite position of
the same size on the same symbol in the spot market.
The benefit of the Arbitrage Bot over manually implementing an
arbitrage strategy lies in its automated execution of both the spot
and futures trades simultaneously once the user has entered their
strategy parameters, so users no longer have to separately manage
two trade orders on different trading interfaces. The Arbitrage Bot
strategies are independently managed in users' trading bots wallet,
also making it easy for users to monitor their performance.
Funding fees are unique in crypto markets and are
designed to help keep spot and perpetual futures prices aligned.
Long traders pay short traders the funding fee when the funding
rate is positive as a result of a bullish trend, and short traders
pay long traders the funding fee when the funding rate is negative
as a result of a bearish trend.
The Arbitrage Bot allows users to deploy two types of
strategies:
- Positive Carry: The bot buys assets on the spot market and
shorts the corresponding perpetual futures contract, aiming for the
user to collect funding fees from a positive funding rate.
- Reverse Carry: The bot sells assets on the spot market and goes
long on perpetual contracts, aiming for the user to collect funding
fees from a negative funding rate.
The Arbitrage Bot is available on the Binance
website and will be released on the Binance App on
May 30.
Rohit Wad, Chief Technology Officer of Binance,
shared, "We believe in giving users more choices and we
constantly review community feedback to understand what users want.
Our Funding Rate Arbitrage Bot is a simple and effective tool to
automate for users who already manually deploy arbitrage
strategies. Its user-friendly interface means more users can try
new strategies. We continue to build trading tools for our users
and we are pleased that the community's reception to our Spot Copy
Trading launch has been very positive with over 700 Lead Traders
registrations so far."
Copy Trading Fully Available to All Eligible Users
Binance introduced Spot Copy Trading in response to
user demand and first released the feature to Lead Traders in late
April.
More than 70% of active Lead Traders have recorded positive
P&L since registering for Spot Copy Trading, against a market
that was particularly volatile and which had seen overall
crypto market capitalization drop by 11% in April.
Following the successful introduction of Spot Copy Trading to
Lead Traders in April, the feature will be fully available to all
eligible users from May 15 onwards to
follow Lead Traders and replicate their portfolios.
Disclaimer: Digital asset prices can be volatile. The
risk of utilizing an Arbitrage Bot includes, and is not limited to,
that if the direction of the funding rate reverses while employing
a futures arbitrage strategy, you may end up paying instead of
earning a funding fee. If the price discrepancies between the Spot
and Futures markets in respect of the relevant underlying Asset(s)
becomes larger, and/or in scenarios where liquidity is insufficient
on either side, there may be delays or difficulties in either
opening or closing positions reflected in Arbitrage Transactions.
Both may undermine the effectiveness of the intended Arbitrage Bot
Strategy. You are solely responsible for your investment decisions
and Binance is not liable for any losses you may
incur. Use of Arbitrage Bots involves futures trading, which is
subject to high market risk and all of your margin balance may be
liquidated in the event of adverse price movement. The value of
your investment may go down or up and you may not get back the
amount invested. You should only invest in products you are
familiar with and where you understand the risks. You should
carefully consider your investment experience, financial situation,
investment objectives and risk tolerance and consult an independent
financial adviser prior to making any investment. Content on our
platform does not contain advice or recommendations. This material
should not be construed as financial advice. Unless the context
otherwise requires, capitalized terms used in this disclaimer shall
have the meanings given to them in the Binance Trading
Bots Terms. Arbitrage Bot is restricted in
certain countries and to certain users. This content is not
intended for users/countries to which restrictions apply.
For more information, see the Binance Trading Bots
Terms, our Terms of Use and Risk Warning.
Trading by following and/or copying the trades of other traders
involves a high level of risk, even when following and/or copying
the top-performing traders. Such risks include the risk that you
may be following/copying the trading decisions of possibly
inexperienced/unprofessional traders, or traders whose ultimate
purpose or intention, or financial status may differ from yours.
Past performance is not a reliable predictor of future performance.
Before trading, you should make an independent assessment of the
appropriateness of the transaction in light of your own objectives
and circumstances, including the risks and potential benefits.
Consult your own advisers, where appropriate. This information
should not be construed as financial or investment advice. To learn
more about how to protect yourself, visit our Responsible Trading
page. Copy trading is restricted in certain countries and to
certain users. This content is not intended for
users/countries to which restrictions apply. For more information,
see our Terms of Use and Risk Warning.
About Binance.com
Binance is a leading global blockchain ecosystem
behind the world's largest cryptocurrency exchange by
trading volume and registered users. Binance is
trusted by more than 190 million people in 100+ countries for its
industry-leading security, transparency, trading engine speed,
protections for investors, and unmatched portfolio of digital asset
products and offerings from trading and finance to education,
research, social good, payments, institutional services, and Web3
features. Binance is devoted to building an inclusive
crypto ecosystem to increase the freedom of money and
financial access for people around the world with
crypto as the fundamental means.
For more information, visit:
https://www.binance.com
ENDS
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SOURCE Binance