Overdrafts for Gold Arbitrage and Large Trades
How an overdraft helps execute trades quickly and capture short-term opportunities while your primary capital is temporarily tied up.
Gold trading often requires rapid execution because arbitrage opportunities can be brief and depend on available liquidity. Capital may already be tied up in settlements, other transactions, or across different venues. An overdraft lets you execute immediately and settle the borrowed amount when funds become available.
When is overdraft used?
- 1. Locking in an arbitrage price — When prices differ across markets, an overdraft lets you execute immediately without waiting for a transfer.
- 2. Capital already in use — If funds are tied up in other transactions or settlements, an overdraft keeps the trading cycle moving.
- 3. Settlement delays — When funds are moving between venues, an overdraft locks in the rate despite the temporary liquidity gap.
Overdraft is used to complete a transaction and fix the exchange rate. It is not intended for withdrawing funds or closing cash gaps outside of trading operations.
Locking In the Rate
The instrument works similarly to a deliverable forward on USDT/RUB: the rate is fixed and the trade is executed immediately, while final settlement occurs later. This reduces currency risk between execution and settlement.
How it works on ABCEX
| Parameter | Meaning |
|---|---|
| Collateral | From 5% in RUB or USDT |
| Standard limits | 5,000,000 RUB / 50,000 USDT |
| Liquidity | RUB liquidity is available, which is important for physical metal transactions |
| Financing rate | 0.1% per day (36% per annum) for RUB and USDT |
The instrument is used as a temporary liquidity buffer rather than as long-term financing.
Who is it suitable for?
- Gold arbitrage traders;
- Businesses handling large volumes of metal;
- Traders who regularly move between different markets;
- Anyone who needs to lock in a rate before settlement.
See “Margin Spot and Overdrafts” for limits, margin, liquidation, and repayment details. To borrow funds for a trade, enable the “Use overdraft” toggle in the order form.