OKX, the world’s third-largest cryptocurrency exchange by trading volume, has unveiled a new automated execution facility for a bi-legged crypto arbitrage strategy, aiming to help retail investors maximize their returns. This latest update simplifies the complex process of placing simultaneous opposing positions in spot and perpetual futures markets, making the strategy more accessible to traders of varying experience levels.
The new feature, integrated into OKX’s Arbitrage bot, allows eligible users to capitalize on pricing discrepancies between spot and perpetual futures markets for cryptocurrencies like bitcoin (BTC). Traditionally a strategy favored by sophisticated traders, arbitrage involves buying a cryptocurrency in the spot market and selling perpetual futures contracts when the futures trade at a premium. This approach enables traders to collect funding fees from long (bullish) perpetual positions while minimizing exposure to price volatility. During market uptrends, this strategy has historically delivered annualized returns exceeding 20%.
OKX’s automated execution facility now streamlines this process using built-in AI, which manages the entry, exit, and position adjustments required for the arbitrage strategy. The bot’s “Smart Mode” automatically recommends the optimal strategy, while a “Custom Mode” allows traders to select strategies based on their own research.
Lennix Lai, Global Chief Commercial Officer at OKX, highlighted the benefits of this update, stating, “With this enhanced Smart Arbitrage bot, we continue to lead the way in providing automated, intuitive trading solutions that empower traders of all experience levels in the crypto market. By introducing further automations, we’ve improved the accessibility and ease of executing sophisticated strategies like arbitrage.”
OKX’s move follows similar offerings from other major exchanges like Binance, which also provide automated execution for arbitrage strategies.
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