OVEX, a South African based bitcoin and cryptocurrency exchange, today announced a new arbitrage service that is designed to exploit mismatches in the price of bitcoin to the U.S. dollar USD) and South African rand (ZAR).
Over the past 4 years, BTC has traded at an average premium of 4.6% in South Africa compared to international markets. The arbitrage service will enable OVEX customers from South Africa to use their annual Single Discretionary Allowance (SDA) of R1 million to earn arbitrage trading profits in a completely automated service.
Imagine you deposit R100,000 into the OVEX Arbitrage Service and decide to use your entire R1 million SDA. When registering for the service you will indicate your starting capital amount (R100,000 in this example) and the portion of your SDA that you would like to use (R1 million in this example).
The OVEX system will then use up your total SDA by making 10 arbitrage trades of R100,000 each. Assuming you make an average of 4% on each trade, you will make R40,000 worth of profits.