Platform feature

Price differences need context.

Compare markets with a clear view of timing, spread, fees and execution risk before treating a difference as an opportunity.

Overview

What exchange arbitrage describes

Exchange arbitrage seeks to identify a temporary difference in the quoted price of the same or economically related instrument across different venues. The apparent difference is not the same as a guaranteed profit.

Execution matters

Quotes can change before both sides are completed. Spread, trading fees, transfer costs, funding delays, liquidity and currency conversion can remove or reverse the apparent difference.

Evaluation

From displayed gap to net result

Compare like with like

Confirm that the symbols, quote currency, contract size and product type are genuinely comparable.

Check freshness

A timestamp difference can create a gap that no longer exists in an executable market.

Include every cost

Subtract Bid/Ask spread, venue charges, ticket fees, financing and conversion costs.

Review liquidity

The displayed top price may cover only a small quantity, while the rest executes at worse levels.

Account for transfers

Assets or funds may not move between venues fast enough to complete the intended sequence.

Plan failure states

Decide what to do if one side fills and the other is rejected, delayed or repriced.

Platform presentation

Clear data, no guaranteed returns

Where comparison tools are available, AegeanOil can present cached prices and market context in one workspace. This information is for analysis. It does not guarantee that both prices are executable at the displayed quantity or that a difference will remain available.

First checkExact instrument
Then calculateNet costs
Before actingExecution risk

Risk checklist

Questions to answer first

  • Are both quotes live, exact and denominated in the same currency?
  • Is the available quantity sufficient on both sides?
  • What is the net difference after spread, fees and conversion?
  • Can both operations be executed and settled without an uncovered position?
  • What happens if connectivity, liquidity or one venue fails?