Investors who engage in arbitrage trading know about the high profits and low risks involved.
Now, this trading method has become even more competitive with the introduction of automation.It is a challenge to manually conduct arbitrage trading as the profits come from finding price discrepancies in the different markets.
This trading method requires speed and manually finding the data, and trading is done faster by a program and a computer.“This is where automation of arbitrage trading comes in.
A great platform is one that offers automation that is programmed to extract data from the world wide web of information, analyze which markets are more profitable and have lower risk, and most likely close the deal itself,” says Tony Jackson, Chief Executive Officer of Jenco, a decentralized financial service platform.Traders use different software programs to achieve successful trades.
One type of program is automated trading software.
“This type of program is designed to overcome one of the primary challenges of arbitrage trading: the timely and accurate trade execution necessary to take advantage of trading opportunities that may only exist for a few brief seconds,” according to J.B Maverick in an article in Investopedia.