A tutorial on how to use the OTC desk for manual arbitrage.
To use the OTC Desk for manual arbitrage the following conditions must be met:
- The trader must be trading blocks of ZAR500K or more
- In accordance with South Africa’s Financial Intelligence Centre Act 38 of 2001 (in order to combat money laundering activities and to counter-terrorism financing) OVEX needs to verify your identity and proof of address
- Brokers can make use of the OVEX FX Service for the Forex leg of their arbitrage trade with OVEX.
- Brokers will be able to book both the crypto portion and forex portion of their trade all through the same channel with OVEX. Regardless of whether you are trading one client or one thousand clients the process remains unchanged.
AS AN OVEX BROKER YOU HAVE ACCESS TO THE OVEX OTC DESK FOR TRADING ARBITRAGE ON YOUR CLIENTS’ BEHALF.
WHAT IS THE PROCESS?
To manually engage in arbitrage via the OVEX OTC Desk – you must undertake the forex leg of arbitrage trades in your own capacity. To complete this leg of the transaction we recommend using the OVEX FX Service. This means you will be able to book b0th legs of your arbitrage trade all through a single channel. What's more - the OVEX FX Service boasts the tightest spreads. Making sure you optimise your arbitrage strategy to the Nth degree.
Once you have purchased USD on your clients behalf it will then be sent to our offshore facility and used to purchase TUSD directly from OVEX’s UK branch.
To do so you will have to individually book SWIFTS for each of your clients through their respective offshore bank accounts. You can then sell this TUSD through the OTC Desk on OVEX’s local SA exchange at the premium. The spread on the TUSD/ZAR sale is identical to that of the BTC/ZAR implied rate.