Using a Crypto Spread Calculator for Arbitrage Trading

Arbitrage looks simple on paper: buy low on exchange A, sell high on exchange B, pocket the difference. In practice, every fraction of a basis point matters — and that is exactly what a spread calculator is built to surface.

The four real costs of an arb trade

1. Buy-side spread on exchange A (you pay the ask).
2. Sell-side spread on exchange B (you receive the bid).
3. Maker/taker fees on both legs.
4. Transfer or settlement cost (network fee, withdrawal fee, time-value of capital).

If gross gap < sum of these costs, the trade is a loss before slippage.

Worked example: BTC arbitrage

• Exchange A bid/ask: 64,990 / 65,000
• Exchange B bid/ask: 65,080 / 65,090
• Gross gap (B bid − A ask): $80

Costs on $10,000 size:

• A taker fee 0.05% = $5.00
• B taker fee 0.05% = $5.00
• Network fee for BTC withdrawal: ~$2.00
• Half-spread crossing on both legs already in the gap calc

Net edge per BTC ≈ $80 − $12 = $68 before slippage. Healthy.

Where the spread calculator earns its keep

Plug bid/ask + size into our Spread Calculator for instant total cost. Combine with the Net Fee Calculator and the Funding Rate Calculator to model:

• Spot-to-spot arb
• Cash-and-carry (spot vs perp)
• Cross-exchange perp-to-perp basis trades

Risk reminders

• Transfer time can erase the gap before settlement.
• API rate limits matter when speed is the edge.
• Withdrawal availability can vanish in volatile windows.

Arbitrage rewards traders who measure precisely — make the calculator your first stop on every potential setup.