Arbitrage on Bitmex

[zaico]

I've been reading an article about arbitrage in Bitmex with Buy Spot vs. Sell Futures. The mechanics are very simple:
Find a basis between spot and future.
Buy X amount of btc on exchange.
Sell the amount of X + the basis.
At settlement date you win the basis whatever happens. (plus your initial balance).

If been doing some numbers and I don't see the arbitrage. If the price goes up you lose everything (you got margin called).
Am I missing something. Thanks!

[Bitmagic45]

Arbitrage trading should be profitable due to the difference in price between the exchanges. The basic principle is to buy BTC at one Exchange for a certain price (1200) and transfer to another exchange where BTC is worth more (1250). Once your bitcoin are at the 2nd exchange one transfers to USD and you should be able make the difference. Two problems. One needs high volume to make a good profit and one needs to be quick from 1st step to last. It is not as easy as it sounds.

[techjcv]

Arbitration is essentially buying in one market and simultaneously selling elsewhere, benefit from temporary differences. To apply arbitrage in crypto currency trading, the cost and speed of transactions must be taken into consideration because the market price is always changing.

[beerlover]

If been doing some numbers and I don't see the arbitrage. If the price goes up you lose everything (you got margin called).
Am I missing something.

When you are not sure about how the F&O works and how to arbitrate within them, it is highly recommended to stay away. Right now Indian bitcoin markets are ahead of $200 than rest of markets (check here). If you can make use of it, you can earn decently with this arbitrate trading opportunity.

[gribble]

Arbitration is essentially buying in one market and simultaneously selling elsewhere, benefit from temporary differences. To apply arbitrage in crypto currency trading, the cost and speed of transactions must be taken into consideration because the market price is always changing.

Yea I agree with arbitrage is not one markets only I don't agree with OP, arbitrage on bitmex only although it gives profit that is trading like other trading on markets, talking about arbitrage there is service that gives recomendation about different price between markets, the minimal capital be used for getting profit, we can check on here https://beta.krip.to/ unfortunately this service is still under maintenance.

[EarnOnVictor]

-snip-
If been doing some numbers and I don't see the arbitrage. If the price goes up you lose everything (you got margin called).
Am I missing something. Thanks!

As much as I don't encourage people to engage in arbitrage trading (not because it is unprofitable), but it's because the dealer could frown at it, and some of them are even using it as a setup against people. Also, it requires a good amount of money before you can make something good out of it (higher risk).

However, if you must do it, you are doing it wrong by dealing with an exchange. It's better done with multiple dealers whose pricing rates vary. You move the money in and out of them based on the variation and your gain difference calculation, simple.