Arbitrage spread refers to the difference in prices for the same asset across different markets or exchanges. In the context of cryptocurrency, this occurs when a particular digital asset, like Bitcoin or Ethereum, is priced higher on one exchange than on another. Traders can take advantage of this price discrepancy by buying the asset at a lower price from one exchange and selling it at a higher price on another.The profitability of this strategy relies on the size of the price difference, or spread. A larger spread provides a greater opportunity for profit, while a smaller spread may not cover transaction fees or other costs associated with executing trades. However, executing successful arbitrage strategies requires speed and efficiency, as price gaps can close quickly due to market forces. Additionally, traders must consider factors such as withdrawal limits and transaction times, which can impact overall gains. Thus, while arbitrage can be profitable, it also involves risks and challenges that traders need to manage.
UK’s FCA to Allow Retail Investors Limited Access to Crypto ETNs
The UK’s Financial Conduct Authority (FCA) will permit retail investors to access certain crypto asset-backed exchange-traded notes (cETNs) for the