Crypto markets are always open 24 hours per day, 7 days of the week. This means that there can be new opportunities at any point in time, even when you’re asleep. For that reason, setting up orders manually in anticipation of these opportunities is a way to position yourself favourably. Or alternatively, you can use tools to automate that for you. That’s where DEXBot comes in.
What you’ll learn
- DEXBot trading strategies
- Relative orders
- Staggered orders
- Order book depth
- More about arbitrage opportunities
Relative orders
The order book is a list of buy and sell orders for a specific market. With the relative order strategy, you are putting both bid and ask orders on the book. When markets oscillate and you have trades on the order book on both sides, you are market making. This means you are positioned perfectly to capitalise on any opportunities that arise.
Order book depth
You can visualise the order book depth to get a better picture of the liquidity in a market. With both bid and ask side presented visually next to each other, in an ideal scenario you would see a “valley shaped” or “V shape” order book. This means there is very little liquidity right at the market price, but increasingly so when go back in order book depth.
Arbitrage opportunities
A market heavily influenced by staggered orders present interesting opportunities. Particularly when when big market swings take place, orders set previously create massive arbitrage opportunities. How arbitrage works is explained in more detail in DEX 104, but in this episode we briefly revisit it in relation to staggered orders.
To watch the full episode and to access the workbook, click below:
