Portfolio growth and opportunities in the new global market - Jubilee Ace

1. Portfolio growth and opportunities in the new global market There is no denying the fact that the global pandemic has hit the stock market the hardest. This unprecedented outbreak of global proportions made industries vulnerable and immobilized thousands of businesses in all countries that suffered the most cases of infection. The United States stock market hit an all-time low running the circuit breaker as many four times in just ten days. European and Asian markets followed with the United Kingdom’s main index dropping to more than 10% and Japan to 20% from its highest position in 2019, according to a report in the Elsevier Public Health Emergency Collection. There is clear evidence that the pandemic hit the stock market and hit it hard. Financial policies were readied to ease the economic crises that were gripping countries, including 1st-world ones. In recent months, stock markets have begun to bounce back with some industries and financial endeavors that have withstood the global crisis and even thrived in its face.

2. Benefits of arbitrage trading in today’s market An example of a financial endeavor that seemed unfazed by economic crises is arbitrage trading. This practice is defined in the economic and financial world as the act of taking advantage of price differences in different markets. Arbitrage trading presents an opportunity for high profits with very low risks. This is especially true when it involves forex trading. Not all financial institutions have the same price for a currency. To best illustrate arbitrage trading, let us use the two-currency arbitrage. Currency is bought at a specific price from one financial institution and immediately sold to another with a different value. The discrepancy in the quotes is where arbitrage traders profit This form of trading is done practically simultaneously. The speed of the transaction allows the low-risk advantage as trading happens before markets can adjust. This is unlike other assets that a trader has to hold on to and cannot sell immediately. As volatile as the market is, you will never know when your stocks will crash or suddenly rise on value. All these benefits you, the trader, because you will be able to sustain your portfolio and grow it without depending heavily on a company’s performance. However, there is a definite disadvantage in the speed of the trade. It can be a challenge to keep a pulse on all the incoming data through manual means. Hence the most popular solution for traders is automation. Advancing arbitrage trading through automation The continued development of technology has proven to benefit traders all over the world. Automation includes using artificial intelligence to take current data and perform specific and programmed functions with it. Many platforms have introduced their automation solution to traders who want to pinpoint opportunities for growing their digital assets. According to a study by Jubilee Ace, sophisticated automation and algorithms can also increase liquidity. With such technology, traders can rely on arbitrage

3. trading algorithms to scan opportunities to trade and execute the deal immediately. Exchanges are on the rise globally, and inefficient market pricing is inevitable. With the best and most advanced algorithm technology, traders can quickly find the opportunity and have the program automatically trade. These algorithms and automation are programmed to detect only profitable trades decreasing the risk of profit-loss even more. Maximizing profits and reducing risks According to a study by Vijaykumar Kaluvala, there are times “retail investors spot some arbitrage opportunities in the market, but if they try to key in those trades manually, they may lose the opportunity because by that time many big traders who have automated software running for spotting such arbitrages would have executed those trades.” Based on research and studies around the world, automation of arbitrage is nothing but a great strategy to optimize profits. Growing your portfolio through arbitrage trading has never been this lucrative. These days, the volatility of the market has pushed many to consider putting their digital assets into high technological gear with automation. Through automation platforms and bots’ assistance, a trader like you can monitor behind the scenes while you are even on your mobile phone. Automation not only spells bigger profits and low to zero risks, but it also makes trading a breeze giving you more time to pursue other trades. SOURCE : Jubilee Ace