Cross-Exchange Spot Hedging with Fee-Adjusted Price Comparisons

Summary

This teaching example outlines a basic arbitrage strategy for digital-asset spot markets across multiple exchanges. It gathers account balances and quotes, adjusts buy and sell prices for exchange fees, and compares venues to find opportunities to buy on a lower-priced exchange and sell on a higher-priced one. It also tracks total holdings and account value, refreshes fee data, and manages open orders and exchange balances as part of the strategy loop.

The document presents implementation logic rather than measured trading results. It calls the approach a basic version with substantial room for improvement and says it can be adapted by learners. Its practical limits include the need for adequate balances on both venues, exchange-specific minimum order sizes, fees, execution timing, and the possibility that prices move or orders fail before both sides of a hedge complete. No backtest or live performance evidence is provided, so the code’s existence does not establish profitability or reliable risk control.

Key ideas

• The strategy seeks to exploit price differences by buying on one spot exchange and selling on another.
• Quotes are adjusted for trading fees before cross-exchange prices are compared.
• Account balances, minimum order sizes, open orders, and total portfolio value are included in the operating logic.
• The example is an introductory framework and reports no evidence of profitability or execution quality.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.