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arbitrage

A collection of 21 issues

Law of One Price: Definition, Examples & Implications

The Law of One Price Explained The Law of One Price (LOOP) states that identical goods should sell for the same price everywhere once exchange rates and transport costs are considered. With markets increasingly integrated, this principle underpins theories of purchasing power parity, arbitrage, and global asset pricing, making it

High-Frequency Forex Arbitrage with Microwave Networks: Infrastructure Overview

Introduction: The Race for Nanoseconds In the hyper-competitive world of high-frequency trading (HFT), foreign-exchange (Forex) desks battle for opportunities that vanish in the blink of an eye. Arbitrage — simultaneously buying and selling the same currency pair in different venues to capture a price discrepancy — has existed for centuries, but its

Cross-Currency Basis Trading: Capturing Mispricings in Global Funding Markets

Introduction In a world where capital moves at lightning speed, the ability to exploit tiny price differentials can make the difference between a mediocre and a stellar trading desk. Cross-currency basis trading, an often-overlooked niche within the fixed-income and foreign-exchange arenas, offers precisely that kind of edge. By arbitraging funding

Perpetual Swap Funding Rates: Mechanics, Arbitrage Strategies, and Risk Management for Crypto Traders

Introduction: Why Funding Rates Matter Perpetual swaps have become the go-to derivative for crypto traders who want to express directional views without worrying about contract expirations. The glue that keeps these perpetual products anchored to the underlying spot price is the funding rate, a periodic fee exchanged between long and

Cryptocurrency Arbitrage Strategies: Cross-Exchange Spread Identification, Latency Optimization, and Risk-Managed Execution Techniques

Introduction Cryptocurrency arbitrage — the practice of profiting from temporary price differences for the same digital asset across multiple markets — continues to attract traders seeking low-risk, high-frequency opportunities. However, harvesting those fleeting spreads requires more than simply glancing at a price ticker. Successful crypto arbitrageurs combine cutting-edge data analytics, latency-optimized infrastructure,

Cryptocurrency Futures Basis Trading Playbook: Spot–Perpetual Spread Analysis, Funding Rate Arbitrage, and Market-Neutral Yield Strategies

Introduction: Why Basis Trading Still Matters In the ever-evolving digital-asset market, traders search relentlessly for yield that is insulated from directional risk. Cryptocurrency futures basis trading—also known as spot–perpetual spread trading—remains one of the most reliable market-neutral techniques. By exploiting temporary mispricings between the spot price of

Crypto Cross-Exchange Arbitrage Strategies: Price Spread Detection, Automated Execution, and Capital Efficiency Best Practices

Introduction: Why Cross-Exchange Arbitrage Still Matters In the hyper-competitive world of digital assets, prices for the same token can differ by fractions of a cent or several dollars across exchanges. These discrepancies, known as price spreads, create opportunities for cross-exchange arbitrage—buying an asset where it is undervalued and simultaneously

Cryptocurrency Correlation and Cointegration Analysis: Portfolio Diversification, Hedging Strategies, and Statistical Arbitrage Opportunities

Introduction In just over a decade, digital assets have grown from a cypherpunk experiment to a multi-trillion-dollar asset class. Yet the same traits that make cryptocurrencies exciting—24/7 trading, global accessibility, and a rapid pace of innovation—also make the market notoriously volatile. To tame that volatility, investors are

Cryptocurrency Hard Fork Investing Strategies: Pre-Fork Snapshot Planning, Chain Support Evaluation, and Post-Fork Arbitrage Opportunities

Introduction Cryptocurrency hard forks can generate significant trading volumes, media buzz, and lucrative opportunities for well-prepared investors. Whether you are aiming to collect free forked coins, speculate on price movements, or arbitrage between diverging chains, having a clear strategy is essential. This article explores three core pillars of a successful

Cryptocurrency Futures Basis Trading: Calendar Spreads, Cash-and-Carry Arbitrage, and Risk Management Fundamentals

Introduction: Why Basis Trading Matters in Crypto Markets Cryptocurrency futures have rapidly matured from a niche derivative to a staple of digital-asset trading desks. Central to their appeal is the concept of the “basis” — the price difference between a futures contract and the underlying spot cryptocurrency. Basis trading allows disciplined