{"id":12871,"date":"2026-04-27T15:52:51","date_gmt":"2026-04-27T15:52:51","guid":{"rendered":"https:\/\/bjftradinggroup.com\/?page_id=12871"},"modified":"2026-10-21T16:02:42","modified_gmt":"2026-10-21T16:02:42","slug":"vip-crypto-arbitrage-strategies","status":"publish","type":"page","link":"https:\/\/bjftradinggroup.com\/ja\/vip-crypto-arbitrage-strategies\/","title":{"rendered":"One-leg vs Hedge arbitrage"},"content":{"rendered":"
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BJF TRADING GROUP \u00a0\u00b7\u00a0 STRATEGY REFERENCE<\/span><\/p>\n

VIP Crypto Arbitrage \u2014 One-Leg vs Hedge<\/span> Strategy Reference<\/h1>\n

The two strategies the VIP Crypto Arbitrage Bot routes between \u2014 directional one-leg arbitrage<\/strong> and market-neutral hedge arbitrage<\/strong>. Mechanics, math, capital sizing, broker requirements, risk profile, and when to use each.<\/p>\n

One-leg arbitrage<\/a>
\nHedge arbitrage<\/a>
\nSide-by-side<\/a>
\nWhich to pick<\/a>
\nSub-variants<\/a>
\nRisk & pitfalls<\/a>
\nFAQ<\/a><\/div>\n<\/div>\n

<\/p>\n

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SHORT ANSWER<\/h3>\n

One-leg arbitrage<\/strong> opens a single directional position when one venue’s price spikes away from a reference, then closes when the spread closes. Higher return per trade, market-direction risk during the hold.<\/p>\n

Hedge arbitrage<\/strong> opens simultaneous opposite positions on two venues \u2014 long on the cheaper, short on the expensive \u2014 and closes both when prices converge. Near-zero net market exposure, but capital is committed on both sides and per-trade profit is smaller.<\/p>\n

If you are starting:<\/strong> begin with hedge arbitrage. If you have $5k+ and tolerate variance:<\/strong> add one-leg on top.<\/p>\n<\/div>\n

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One-leg arbitrage<\/h2>\n
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Directional \u2014 capture the snap-back<\/h3>\n

Risk: Medium \u00b7 Edge: High<\/span><\/p>\n<\/div>\n

One-leg arbitrage detects a transient price dislocation on a single venue against a reference (the bot’s aggregated mid-price) and opens a single directional position<\/strong> that profits when the dislocation reverts. Unlike hedge arbitrage, only one leg is in the market \u2014 so the position carries directional exposure during the hold.<\/p>\n

Mechanics<\/h3>\n
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1<\/span><\/p>\n
Detect<\/div>\n

Bot reads tick on Exchange A; compares to aggregated mid across reference venues.<\/p>\n<\/div>\n

2<\/span><\/p>\n
Validate<\/div>\n

Confirms spread > threshold after fees, slippage, and depth-adjusted execution price.<\/p>\n<\/div>\n

3<\/span><\/p>\n
Enter<\/div>\n

Long the cheaper side or short the expensive side \u2014 whichever is mispriced relative to mid.<\/p>\n<\/div>\n

4<\/span><\/p>\n
Exit<\/div>\n

Closes when price reverts to within tolerance of reference, or stop-out fires on adverse move.<\/p>\n<\/div>\n<\/div>\n

Numerical example<\/h3>\n
BTC\/USDT \u2014 one-leg long on Bybit (reference: 4-venue mid)<\/span>
\n# tick observation<\/span>
\nBybit bid 43,180<\/span> ask 43,184<\/span>
\nMid (Binance, OKX, Kraken, Coinbase) 43,232<\/span>
\n# dislocation<\/span>
\nspread = 43,232 \u2212 43,184 = +48 USDT<\/span> # Bybit underpriced<\/span>
\nthreshold = +18 USDT<\/span> \u00a0 \u2192 pass# trade<\/span>
\nsize = 0.20 BTC<\/span>
\nentry (Bybit ask) = 43,184<\/span>
\nexit (when Bybit mid \u2265 43,225) target = 43,225<\/span>
\nfees (taker 0.055% \u00d7 2) = 9.51 USDT<\/span>
\nexpected slippage on entry\/exit = 3.20 USDT<\/span><\/p>\n

# P&L if convergence completes<\/span>
\ngross = (43,225 \u2212 43,184) \u00d7 0.20 = +8.20 USDT<\/span>
\nnet = 8.20 \u2212 9.51 \u2212 3.20 = \u22124.51 USDT<\/span> # too small<\/span><\/p>\n

# bot rejects: spread (after fees) is below threshold<\/span>
\n# bot fires only on dislocations >= 30 USDT (typical for 0.2 BTC size)<\/span><\/p>\n<\/div>\n

The example illustrates why fee + slippage gating is critical<\/strong>. A 48-USDT raw dislocation looks attractive but evaporates after 9.51 USDT in taker fees and 3.20 USDT in expected slippage. The bot’s threshold logic rejects this trade and waits for a wider dislocation.<\/p>\n

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Strengths<\/div>\n