#ArbitrageTradingStrategy
1. Inter-Exchange Arbitrage (Spot)
• Find a coin trading at a lower price on Exchange A than on Exchange B.
• Buy on A → transfer to B → sell at higher price.
Example:
BTC price on Binance = $100,500
BTC price on OKX = $100,750
Spread = $250 per BTC
Pros: Clear profit potential during volatile events
Cons: Network transfer fees, transfer time risk, KYC limits
Tools to track spreads:
• Coingecko Markets tab
• Coinglass Arbitrage page
• Arbitrage scanners (ArbiTool, Coinarbitragebot)
2. Intra-Exchange Arbitrage (Triangular)
• Exploiting price differences between 3 pairs on the same exchange.
Example (on Binance):
If the conversion cycle gives you more USDT than you started, you pocket the profit.
Pros: No transfer or withdrawal delays
Cons: Requires fast bots or API trading to catch micro-spreads
⸻
3. Futures-Spot Arbitrage
• Take advantage when futures price deviates from spot price (funding rate arbitrage).
Example:
BTC spot price = $100,000
BTC perpetual futures = $101,000
Sell futures (short) and buy spot
When prices converge, close both positions and pocket the difference.
Pros: Can hedge risk-neutral
Cons: Requires margin collateral and active management
4. Cross-Chain Stablecoin Arbitrage
• When stablecoins like USDT, USDC, TUSD trade at slightly different prices on different blockchains (e.g. TRC20 vs ERC20).
Example:
USDT-TRC20 = $0.9995
USDT-ERC20 = $1.0010
Move stablecoins quickly across chains via low-fee networks and pocket the difference.
Pros: Fast opportunities
Cons: Cross-chain bridge fees, risks
