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Profitable Opportunities: Arbitrage Cases with Exchange Order Book Imbalances

Profitable Opportunities: Arbitrage Cases with Exchange Order Book Imbalances
#Cases
14.07.2023 12:13

Profitable Opportunities: Arbitrage Cases with Exchange Order Book Imbalances

Let's consider a scenario where on one exchange, the price of a certain currency drops to $1.5, while on another exchange, it remains at $1.6.

The reason for this discrepancy lies in the existence of a "wall" or "order book imbalance" on the second exchange. This wall is estimated at $400,000 and constitutes 6% of the total trading volume. Such situations often occur in pairs of large and small exchanges. Traders with significant volume tend to prioritize buying on the exchange with the most trading volume and liquidity for the particular coin. You can utilize such situations for arbitrage and identify them through a scanner or screener. To do this, you need to interact with the trade volume settings.

Profitable Opportunities: Arbitrage Cases with Exchange Order Book Imbalances

Suppose you have $3,000, and you decide to use them for trading. In one cycle, you can execute 20-30 trades and earn around $150 per trade until the wall disappears.

These opportunities typically arise 1-2 times a month, and the walls persist for about 1-2 hours. As a result, you can achieve profits ranging from 30% to 70% of your initial capital.

To identify such walls, you can subscribe to Pro or higher tiers, granting you access to the scanner and screener services. The screener displays all suitable arbitrage opportunities across various exchanges and coins. The scanner is a specific tool that helps you find the best arbitrage option for a particular coin.

You can subscribe to our Telegram channel, register on our website, and request a trial day to test our Scanner. We hope you enjoy these case studies, and we will continue to share the latest and newest cryptocurrency arbitrage methods with you!