Cross-Exchange Crypto Arbitrage with Spot and Futures Hedging
Summary
This document describes a crypto arbitrage system that monitors spot and futures markets across exchanges, seeking temporary price differences for offsetting trades. It also discusses funding-rate capture and contract hedging. The system claims to balance spot holdings, limit entries when latency is high or margin is insufficient, and support manual controls and position liquidation.
The document offers no independently verified performance data. It says results depend on market activity, trading fees, network speed, account features, and available borrowing. Risks include unhedged spot exposure, stop-outs, funding or borrowing costs exceeding arbitrage gains, one-sided fills that leave imbalanced positions, and exchange outages or security failures. Its low-risk and stable-return claims are therefore not established by evidence in the document; execution costs and operational failures can materially affect outcomes.
Key ideas
- The system seeks short-lived price differences across exchanges and uses fast opposing trades to capture them.
- Spot holdings can retain directional risk unless hedged with contracts or otherwise offset.
- Fees, market activity, and network latency affect whether observed price differences can cover trading costs.
- Partial fills, stop failures, funding charges, borrowing interest, and exchange disruptions can cause losses.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.