![]() ![]() Regardless of the type of market, an arbitrage opportunity is always available. These indexes trade on multiple exchanges offering arbitrage opportunities. Theoretically, index arbitrage opportunities are present in the difference between the spot and the asset’s future price. Index Arbitrage: This type of strategy exploits the price discrepancies between two or more market indexes by buying a lower price index and selling at a higher index with a profit-making target.He profits by taking advantage of the discrepancy in value across the different assets. For example, a trader can buy BNB with his BTC, then buy ETH with his BNB, finally, he can buy back BTC with the ETH in a type of price loop, which happens in seconds. Triangular arbitrage works with a single asset having a different value across other pairings. You just want to take advantage of an asset with different values. Triangular Arbitrage: Let’s say you are not comfortable moving funds around different exchanges due to the cost. ![]() ![]() Sometimes, a cryptocurrency arbitrage opportunity is determined by the amount of liquidity involved and the fees incurred. For example, when a currency is trading lower on exchange A, traders can buy to sell on Exchange B, where the price is slightly higher.
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