Arbitrage Trading

Can I set targets or stop losses for my arbitrage trade?

On 31 August 2022, we added a new feature under Trading Preferences. Normally, clients can already choose between two types of trading methods: either the "Batch" method or the "Hedge" method. Now, clients can also set two new values when making use of the Batch method, namely:

• An Upper Limit
• A Lower Limit

The upper limit functions as a "Target Price" and the lower limit functions as a "Stop Loss". This means that, for example, you can set your u...

A summary of how a trade with Koinexpert works from beginning to end.

Arbitrage trading is buying and selling the same currency on two different markets at different rates. Using the Arbitrage Principle, we have developed automated software to identify high arbitrage opportunities and execute trades immediately to generate short-term financial gains.

To make use of our service, you need to have:

1. A South African ID Book, Card or Passport
2. A South African Tax Number
3. A South African bank account registered in your name...

What are the underlying coin(s) that Koinexpert targets?

We don't explicitly mention all of the currencies we target, but it certainly includes all the popular ones: BTC, ETH, XRP etc. It will also change a few times throughout the year as we might shift our efforts towards coins that perform better.

How do I change my trading preference?

You can either follow the direct link: https://www.koinexpert.com/dashboard/arbitrage.

Alternatively, you can also find this link by following the below steps:

1. Log into your Koinexpert profile.
2. Click on the profile icon in the top right corner.
3. Click on the "Arbitrage Services" option from the dropdown list.
4. On the left side of the page, you will find the "Change Trading Preference" button.
5. Click on the button and follow the instructions.

As a remind...

What is the maximum trade size?

Koinexpert allows a maximum trade size of R4 999 999 ZAR.

My funds did not arrive! What now?

The process of sending money abroad is not a complicated one but it is important to be aware of things that could affect how soon your funds arrive. Let's walk through the process...

1. The intermediary's (Gapex, FX Rand, etc) job is to book a deal for a client as early as possible in the morning, ideally before 11 AM. Any deal booked after 11 AM will not settle on the same day as the bank's dealing room/system does not allow for same-day value de...

What is the difference between the Hedge and the Batch Trade Options?

The Arbitrage process begins when a client books a Forex deal with their respective Forex Intermediary. When booking a deal, a client converts their South African Rands (ZAR) to US Dollars (USD). The moment this deal is booked, the client will be exposed to Forex movement. For example, if the Rand strengthens right after booking a deal, the USD the client has will now be worth less than it was earlier. If the Rand Weakens, the client's USD wil...

What is the minimum trade size?

Koinexpert allows a minimum trade size of R100 000 ZAR.

Keep in mind that smaller trade sizes will return less profits due to fixed fees charged by the bank. These fees include a SWIFT fee of +-R500.00 ZAR and a Conversion Fee of about 0.2% to 0.5%.

How long does a trade take, from start to finish?

The execution of the trade by Koinexpert relies on various stakeholders, and compliance with all exchange control mechanisms put in place by the SARB, commercial banks and authorised foreign exchange providers. It is generally understood that a client can expect the full lifecycle of the transaction to take up to 24 hours; however, this timeframe may vary from time to time.

How many trades can I execute?

Every South African is subject to the laws and regulations put in place by the South African Reserve Bank (SARB) which relates to exchange control. South Africa’s current exchange control regime limits any individual to a cap of R 1 million per annum. This means that if you have already sent funds abroad to the value of R 1 million, that your respective Single Discretionary Allowance (SDA) would have been exhausted and you will not be entitled...