What is arbitrage?
Arbitrage attempts to benefit when the same or a related asset trades at different prices in different places. A trader buys where it is cheaper and sells where it is more expensive. The displayed difference is a gross spread—not guaranteed profit.
If an asset costs $100.00 on one market and can be sold for $100.80 on another, the visible spread is $0.80. Fees, slippage, transfer time, changing prices, and failed orders can reduce it or turn it into a loss.
Common types
- Cross-exchange arbitrage compares two venues.
- Triangular arbitrage compares exchange rates among three assets.
- DEX arbitrage compares liquidity pools or a pool and a centralized venue.
- Statistical arbitrage uses models and carries model and directional risk.
A short history
Merchants have used regional price differences for centuries. Telegraphs, electronic markets, and algorithms made differences smaller and shorter-lived. Crypto markets are fragmented across around-the-clock venues, networks, and liquidity pools. This can create spreads, but competition, costs, and execution risk remain significant.
How an arbitrage bot works
- Observe: collect current quotes and available liquidity.
- Compare: estimate an executable spread rather than relying on a displayed last price.
- Filter: subtract expected fees, slippage, network cost, and a safety margin.
- Control: enforce approved assets, allocations, limits, and strategy rules.
- Execute: submit orders only when the opportunity passes the checks.
- Reconcile: verify fills and fees and record results in the portfolio ledger.
NexaTrade separates customer instructions, staff review, bot controls, and portfolio records. Live execution depends on verification, eligibility, providers, configuration, and market conditions.
What profit can you make?
No fixed profit can be promised. Results depend on capital, opportunity frequency, liquidity, speed, fees, slippage, failed trades, limits, and losses. A strategy target is a configuration goal—not a forecast or guarantee.
| Educational example | Amount |
|---|---|
| Gross captured spread | $80 |
| Trading/provider fees | − $24 |
| Network cost and slippage | − $18 |
| Illustrative result before tax | $38 |
An actual trade can earn less, earn nothing, fail partly, or lose money. Review your fee schedule and actual ledger rather than projecting target percentages.
Important risks
- Execution: price or liquidity may change before every order fills.
- Counterparty: an exchange, custodian, token, bridge, or pool may fail.
- Technology: software, APIs, smart contracts, networks, and data can malfunction.
- Market: hedges can be incomplete and volatile assets can fall quickly.
- Operational: wrong assets, networks, addresses, permissions, or decisions can cause loss.
- Legal and tax: eligibility and obligations differ by location and can change.
Only use funds you can afford to lose. Read the risk disclosure and obtain independent advice where appropriate.
How to start
- Create an account and confirm your email.
- Complete identity, jurisdiction, source-of-funds, and suitability checks.
- Review risks, custody terms, and fees.
- Connect a wallet with an ownership signature, or use an approved provider account where offered.
- Fund only with the exact asset, address, and network displayed in your portal.
- Select an available strategy and limits and wait for required review.
- Use the existing controls to request start, pause, or stop and monitor the ledger.
Wallets, controls, and human help
A wallet ownership signature should not move funds. Never share a recovery phrase or private key. Verify every network, address, token, amount, and permission. Connected wallet details appear with the portfolio in the customer dashboard. Use the dedicated bot controls to start or stop. The assistant can explain general topics, and both visitors and signed-in customers can request a human agent; automation pauses while the request waits and after staff joins.