Cross-exchange spread arbitrage
Cross-exchange spread arbitrage buys an asset where it trades lower and shorts it where it trades higher, at the same time. The result comes from the two prices converging.
Cross-exchange spreads
Widest open spreads
View all| Coin | Price | Long leg | Price | Short leg | Open spread | Net funding 8h | 24h volume |
|---|---|---|---|---|---|---|---|
Data as of
The two legs
Same asset, equal size: long where the price is lower, short where it is higher. The legs are perpetual against perpetual, or spot against perpetual. What is a cross-exchange spread explains how the spread is calculated.
Entry, holding and exit
Entry: enter when the open spread at executable prices covers fees on both legs, at entry and at exit.
Holding: perpetual legs keep settling the funding fee while the position is open, which adds to or reduces the result.
Exit: close when the close spread reaches your target.
Result and costs
The result is roughly the open spread minus the close spread, less fees, plus or minus funding. Both legs pay fees at entry and again at exit, which can consume a narrow spread.
Related reading: basis and spread convergence and how hedged arbitrage earns.
Key metrics
| Key metrics | |
|---|---|
| Open spread | Measured at executable prices: the ask on the long leg and the bid on the short leg. |
| Close spread | The spread you can close at: the bid on the long leg and the ask on the short leg. |
| Depth and volume | Order book depth, volume and open interest set how much size each leg can take. |
| Fees and rebates | Maker and taker fees and rebates on both legs, per account. |
| Funding rate | Compare the funding rate of both legs normalized to one period, alongside each venue’s settlement period and rate cap. |
| Delistings and maintenance | A delisting or maintenance window on either leg forces an early exit. |
Main risks
Spread widening: After entry the spread or basis can widen further. The position shows an unrealized loss until it converges.
Leg gap: If one leg fills and the other does not, the position carries directional exposure until the leg gap closes.
slippage: On a thin book, market orders fill through several levels and the filled spread comes in below the quoted one.
Fees: Taker fees on both legs, at entry and at exit, can consume a narrow spread.
Venue risk: Funds sit on two venues. Either one can halt withdrawals, suffer an API outage, delist a market or fail.
See the main risks of arbitrage for a fuller account.
Data in Z Market Lab
The market monitor compares the same asset across centralized exchanges, perpetual DEXs and on-chain spot. Open and close spreads use executable prices, with a spread history chart. If one side disconnects, its spread freezes and is marked.
Execution in ZML Trade
A combo opens when the spread reaches its Open trigger and closes when it reaches its Close trigger. Each leg trades at market or post-only. A lagging leg catches up automatically, in the way its order type allows.
Parameters covers triggers and order types. Risk controls covers the leg gap.