Risk Disclaimer: Trading can contain substantial risk and is not suited for every investor. An investor could potentially lose all or more than their initial investment. “Risk capital” - is money that can be lost without jeopardizing one’s financial security or lifestyle.  Only “risk capital” should be used for trading and only those with sufficient risk capital should consider trading. iMarketsLive is not a licensed financial advisor nor does it give out financial advice. The user of IML products and/or services assumes full risk and responsibility for their trading activity. Past performance is not indicative of future results. Individual results will vary due to a variety of market and timing conditions.

• What is Arbitrage Trading?

• How can you Profit from Arbitrage Trading?

• What are the Risks of Arbitrage Trading?

• Examples of what to look for when Arbitrage Trading?

• What tools can help identify Arbitrage Opportunities?

What is Arbitrage Trading

Buying on one exchange and then selling on another where there is demand at a higher price.

In theory, If we were to purchase 10 Ethereum on Bittrex it would cost $3,000 We would then transfer our Ethereum onto Cryptopia and sell at $325 each

$3,250 - $3,000 = $250 Profit but is it really easy?

Risk of Arbitrage Trading

• By the time your transactions are verified the exchange rate may have changed

• Account Verification Process for larger volume

• Availability of Funds

• Liquidity within each separate exchange may be misleading

• Unexpected Fees

• The credibility of Exchange for Withdrawals

• Misleading Ticker Symbols

• BAT/BTC (Batcoin / Basic Attention Token)

• BTG/BTC (BitGem / Bitcoin Gold)

In Summary: Arbitrage can be challenging to execute especially if you’re new to trading.

It’s crucial to identify markets that have a significant volume and implement extra research to verify your potential opportunity exists on the same asset, not an attempted replica!