WHAT ARE THE RISKS, RETURNS & SPREAD FOR THE OVEX ARBITRAGE SERVICE?

A guide on the risks, returns & spreads for the OVEX Arbitrage service

RISKS

The risks involved are essentially non-existent. The sole risk is systematic and involves one of our banking partners, which help facilitate our trades, going insolvent or having a systemized issue of sorts. This is highly unlikely as we bank with some of the most reputable institutions in South Africa like Investec and Mercantile. In terms of market risk - there is none, as we have completely hedged this risk out.

Has anyone lost money?

We have traded over 15000+ arbitrage clients actualising over ZAR50million in arbitrage profits – no one has made a loss. Why? Because the OVEX Arbitrage Service is fully hedged. This is why we guarantee capital preservation!

 

RETURNS

The returns per trade vary between 2% - 3%. On average we loop twice a week resulting in a mean return of 4% per week on your money. This 4% is not compounded as we cannot re-invest your arbitrage profits.

Below is an example of indicative returns:

Investment - ZAR50K

SDA Allocation - ZAR1million

FIA Allocation - ZAR0

  • The ZAR50K can be traded 20 times (20 x 50K = 1million)
  • We trade on average twice per week (Investment period = +-10 weeks)
  • Indicative returns vary between 2-3% per trade (this is net of spreads). Let us for argument's sake consider consistent returns of 2% per trade
  • 2% x ZAR50K = ZAR1000
  • 20 trades at ZAR1000 = ZAR20K = Net Return

We do all the sweat-work and you can follow the progress on your arbitrage tab tracker.

SPREADS

  • OVEX wages a 1% spread on the initial capital amount per loop
  • A flat SWIFT fee of R500 is charged by our forex brokers for every arb loop that goes through - this is why larger sums invested means more profit