1.9 Spread

The spread usually refers to the gap between the bid and ask price of an asset, but the term is also used for the difference in prices on various exchanges, the arbitrage spread. Low liquidity often results in huge spreads unveiling outstanding arbitrage opportunities.

While high frequency traders in the traditional markets battle over every per mille, high single-digit and even low double-digit spreads are emerging on a daily basis in the cryptocurrency markets, making it the perfect playing field for arbitrage traders. Especially during the challenging trading environment in the recent market correction, arbitrage trading will prove to be a rather safe and profitable alternative trading strategy. Below you can see the spreads of April 12th, 2018:

Illustration 7: Exchange Spreads April 2018; Source: tokenspread.com

Illustration 8: Today’s Top Spreads April 2018; Source: tokenspread.com