ModulTrade Arbitrage Competition Results Announcement!

4 min readFeb 22, 2019

We would like to thank you for the very interesting submissions we received. Besides announcing winners, we are sharing some case studies that can act as examples for all users who want to get involved in arbitrage trading and start making money. Congratulations to everyone who took part in our competition and sent a submission. We are looking forward to seeing more and more arbitrage deals to be realised on MT Market platform.

The ModulTrade team organised this arbitrage competition to raise interest in our community of arbitrage trading. Exploiting price differences between different geographical locations can be a very lucrative business and MT Ecosystem provides all the necessary tools for traders to take advantage of it. The submissions to the competitions provide great examples of opportunities that are out there. We are sharing some cases to provide examples of some successful deals. Interested in the winners? Keep reading.

Case 1.

Best from Hungary shop is a merchant on MT Market that sells products that are a kind of a speciality of Hungary. The shop can source the products from local producers and distributors and put them for sale on MT Market.

Recently the shop created a proposal of nice traditional tablecloths on MT Market.

After a few days, a buyer from Italy appeared and ordered 5 items of the tablecloths. The price was 0.16 ETH (about 16 euros) each, which also included the delivery price in Europe. After the order came in and the purchase amount was paid to the smart contract, the Best from Hungary shop went to the distributor and purchased the products. That is a typical arbitrage deal, as the product was only sourced after a buyer is secured for the deal. The parcel was shipped with the national post in that case and arrived in Italy after a few days. When this shipment had been completed, the money was released from the smart contract and transferred to the seller’s address.

The sourcing price for the table cloth was about 0.11 ETH while the delivery cost about the same for the whole parcel. So in total, the cost for the shop was 5 products * 0.11 ETH product price + 0.11 ETH delivery price = 0.66 ETH. The sale was completed for 0.16 ETH each, so for the 5 items, it is 0.80 ETH. That is a net profit of 0.14 ETH (about 14 euros) which represents a healthy 21% margin.

Case 2.

Yanwoo collection is a seller of jewellery products based in China. By taking advantage of cheaper local prices, the seller can advertise its products on MT Market with a healthy margin. Thanks to the big price differences between the place of origin and the target countries, it is possible to make money on these sales even after taking into account delivery and customs costs — if applicable.

One product that Yanwoo collection is offering, for example, is a pair of nice gold earrings.

These jewellery products are most popular in Western Europe, where compared to local prices they are still very affordable.

Case 3.

This is a classical MT Trade Agent case. The trader found a good supplier for electronic goods such as projectors. The average price to buy one is about 70 euros. To this amount, import tax and delivery price should be added as the product comes from a seller in Asia and will be sold in the EU. Generally, the total cost is no more than 100 euros per item. These products are often selling in Western Europe for a price of about 135 euros. The profit is about 35 euros on each trade which represents a 35% margin.

With MT Market you can find and order from suppliers or MT Market can be your distribution channel by selling your local products on the platform.

And the Winners are

Giorgio Ricciardi — 1st prize
Dmitry Pavlov — 2nd prize
Michiel Mulders — 3rd prize

Big congratulations!

As you can see, opportunities are out there. You can make money on arbitrage deals too. We are here to help.

We have detailed guidelines on how arbitrage deals work. If you want to know more and learn about how to make money online, check out our materials!

If you are new to ModulTrade, you can quickly get up to speed by reading through our MT 101 series which is in an easy to read story format.

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