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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