FAQ?

What is stablecoin price arbitrage and how does it work?

The increasingly growing number of stablecoin projects and the price guarantee that stablecoins are expected to provide is creating multiple kinds of price arbitrage opportunities. For beginners, price arbitrage refers to price inconsistencies for the same asset on different exchanges.

How to profit from arbitrage trading in Bitcoin?

A trader can profit by buying BTC on an exchange trading at a lower price and selling it on a different exchange trading at a higher price. Most arbitrage trades are zero-risk trades as the buying and selling almost happens simultaneously, or over a very short period, leaving the trader immune to price movements.

What is price arbitrage in crypto?

For beginners, price arbitrage refers to price inconsistencies for the same asset on different exchanges. For example, Bitcoin’s price on Coinbase and Gemini are not always exactly the same; there is usually a small price difference between the two exchanges.

How is price arbitrage exploited in traditional asset classes?

In traditional asset classes, most of the price arbitrage is exploited by quants and HFT traders who deploy sophisticated, lightning speed trading strategies to capture the price arbitrage spread.