Arbitrage Shark

How to Use the Arbitrage Matrix

A practical guide to reading the table, spotting opportunities, and acting safely.

What you see in the Matrix

The Matrix lists pairs as rows and exchanges as columns. Each cell shows a Bid and an Ask (or a compact stacked view).
Cells briefly flash green on upticks and red on downticks.

Extra columns (if enabled):

  • Best Spread — gross difference between the highest Bid and the lowest Ask across exchanges for a pair.
  • Best Net % — spread after estimated fees and an optional position size assumption.
  • Δ Net % — change of Net % within your configured window.

Columns & calculations

Let AskbuyEx be the best ask on the buy exchange, and BidsellEx the best bid on the sell exchange.

Gross % = (BidsellEx − AskbuyEx) / AskbuyEx × 100

Net % ≈ Gross % − taker_fee(buyEx) − taker_fee(sellEx) − withdrawal_cost(buyEx)/position × 100

If Net % > 0, there may be a tradable edge, subject to liquidity and limits.

How to spot an opportunity

  1. Pick a pair (e.g., ETH/USDT) and look at Best Net %. If it’s > 0%, identify the cheapest seller (lowest Ask) and the best buyer (highest Bid).
  2. Confirm both venues are available to you (KYC tier, funding, no maintenance), and the books are deep enough for your size.
  3. Use Δ Net % to sense momentum: rising values suggest improving conditions; falling values warn of decay.

Worked examples

Example A — Simple cross‑exchange spot

  • Pair: BTC/USDT
  • Buy on Exchange A (lowest Ask): Ask = 60,000.00
  • Sell on Exchange B (highest Bid): Bid = 60,240.00

Gross % = (60,240 − 60,000) / 60,000 × 100 = 0.40%

Assume taker fees 0.10% each side and no withdrawal movement.

Net % ≈ 0.40 − 0.10 − 0.10 = 0.20%

Action: Buy BTC on Exchange A, simultaneously sell the same amount on Exchange B. Rebalance later.

Example B — Including a withdrawal fee

  • Pair: ETH/USDT
  • Buy on Exchange X: Ask = 2,500.00
  • Sell on Exchange Y: Bid = 2,515.00
  • Gross % = (2,515 − 2,500) / 2,500 × 100 = 0.60%

Taker fees: 0.12% (X), 0.10% (Y). Withdrawal from X costs 0.0005 ETH. If position = 10 ETH:

Withdrawal in % ≈ 0.0005 / 10 × 100 = 0.005%

Net % ≈ 0.60 − 0.12 − 0.10 − 0.005 = 0.375%

Illustrative schema

The diagram below illustrates the columns you’ll typically act on. Values are for demonstration only.

Arbitrage Matrix schema (illustrative)
Columns shown: Best Spread, Best Net %, Net %, Exchange A, Exchange B. Pick the lowest Ask as buy venue (A) and the highest Bid as sell venue (B).

If you prefer a separate file, download the PNG and upload to your Media Library, then replace the image URL:

Download the schema PNG

Action playbook

  1. Confirm readiness: accounts verified, API keys configured (if needed), funds available, limits checked.
  2. Pick an opportunity: Best Net % > 0 on your target pair.
  3. Size your trade: confirm depth is sufficient; avoid heavy slippage.
  4. Execute: taker BUY on the lowest Ask; taker SELL on the highest Bid (or use maker orders if acceptable).
  5. Rebalance & log: restore neutral balances; record realized net % and slippage.

Fees, risks & caveats

  • Fees: your actual fees may differ from estimates; adjust settings for accuracy.
  • Latency: windows decay quickly; execution must be fast.
  • Liquidity: thin books → slippage; check depth.
  • Venue limits: KYC tiers, transfer limits, maintenance windows.
  • Compliance: follow local laws and exchange terms. This is not financial advice.

FAQ

Why does Best Net % differ from my actual PnL?
Because account‑specific fees, slippage, and transfer costs differ from generic estimates. Tune your fee settings and position size.
Can I use maker orders to improve Net %?
Yes, if you accept fill risk. Maker rebates/discounts help but you may miss the window.
What if two venues list different symbols or quote assets?
Verify you’re trading the same asset and quote (e.g., USDT vs USD). The Matrix normalizes most symbols, but double‑check.