Triangular arbitrage calculator for crypto exchanges. Calculates profit opportunities from price differences between three cryptocurrencies by executing quick trades on single exchange.
Starting amount for arbitrage trade
Fee per trade (e.g., 0.1% = 0.1)
How many units of B you get for 1 unit of A
How many units of C you get for 1 unit of B
How many units of A you get for 1 unit of C
Triangular arbitrage exploits price inefficiencies between three currencies on a single exchange. You start with Currency A, trade it for Currency B, then B for C, and finally C back to A. If exchange rates are misaligned, you end up with more of Currency A than you started with.
Example: BTC → ETH → USDT → BTC. You start with 1 BTC, convert to ETH, then to USDT, then back to BTC. If the rates are misaligned, you might end with 1.01 BTC, making a 1% profit. These opportunities are brief and require fast execution.
Markets aren't perfectly efficient. Brief delays in price updates, sudden large orders, low liquidity in certain pairs, or cross-exchange differences create temporary mispricings. Arbitrageurs help correct these inefficiencies, making markets more efficient.
Triangular arbitrage happens on one exchange (faster, less risk).Cross-exchange arbitrage exploits price differences between exchanges but involves transfer delays, withdrawal fees, and counterparty risk.
Each of the three trades incurs a trading fee (typically 0.1-0.5% per trade). With three trades, you pay 0.3-1.5% in total fees. Your arbitrage profit must exceed these fees to be worthwhile. Lower fees = more opportunities.
Profitable opportunities last seconds to minutes. Automated trading bots scan 24/7 and execute instantly. Manual traders can still catch opportunities but need fast decision-making and execution. Delays of even 5-10 seconds can eliminate profit.
Enter the USD value (or equivalent) you want to start with. Example: $1,000. Larger amounts can yield more absolute profit but may suffer from slippage in less liquid markets.
Your exchange's trading fee per transaction (e.g., 0.1% on Binance, 0.075% with BNB discount). Enter as a percentage. You'll pay this fee three times (once per trade), so total fees = fee × 3.
Enter the current exchange rates from your target exchange's order book. A→B: How much B for 1 A. B→C: How much C for 1 B. C→A: How much A for 1 C. Use bid/ask prices for accuracy.
The calculator shows: Final Amount (what you end with), Profit (final - initial),Profit % (return percentage), and whether it's profitable. Profit % above 0.5-1% after fees is generally considered worth pursuing.
5%+: Exceptional (rare). 2-5%: Strong opportunity.1-2%: Good, act quickly. 0.5-1%: Moderate, watch for slippage.<0.5%: Minimal, likely not practical. Negative: No opportunity, you'd lose money.
Calculator assumes instant execution at exact rates. In reality: prices change during execution, slippage occurs (especially with larger orders), and network/exchange delays can eliminate narrow margins. Always add a 0.1-0.3% buffer for these factors.
Start with $1,000. Trading fees: 0.1%. Rates: BTC→ETH: 0.05, ETH→USDT: 20,000, USDT→BTC: 1.005
Result: +$3.00 profit (0.3% return) - a small but worthwhile opportunity with fast execution.
Step1 = Initial × RateAtoB × (1 - Fee/100)
Example: $1,000 × 0.05 × (1 - 0.1/100) = $49.95
Step2 = Step1 × RateBtoC × (1 - Fee/100)
Example: $49.95 × 20,000 × (1 - 0.1/100) = $998,001
Final = Step2 × RateCtoA × (1 - Fee/100)
Example: $998,001 × 1.005 × (1 - 0.1/100) = $1,003.00
Profit = Final Amount - Initial Amount
Example: $1,003.00 - $1,000 = $3.00 profit
Profit % = (Profit / Initial) × 100
Example: ($3.00 / $1,000) × 100 = 0.3%
Profitable = Profit > 0
Example: $3.00 > 0, so Yes, this trade is profitable
Trading fees compound across all three trades. With 0.1% fees per trade:
• After trade 1: 99.9% of expected (0.1% fee)
• After trade 2: 99.8% of expected (0.1% fee again)
• After trade 3: 99.7% of expected (0.1% fee again)
• Total impact: You retain ~99.7% of the ideal no-fee amount (0.3% total fee impact)
Don't just check one combination. Try BTC/ETH/USDT, BTC/BNB/USDT, ETH/USDT/BUSD, etc. Different triplets have different liquidity and efficiency levels. Less popular pairs often have more opportunities.
Tools like ArbitrageScanner.io, Cryptohopper, or custom scripts can monitor dozens of triplets 24/7 and alert you when profitable opportunities emerge (typically 0.5%+ margins after fees).
Binance, Coinbase Pro, Kraken, and other major exchanges have deep liquidity and tight spreads. Smaller exchanges may show better spreads but lack liquidity, causing severe slippage on execution.
Market volatility creates more arbitrage opportunities as prices adjust unevenly across pairs. Major news events, large sell-offs, or sudden rallies often create brief windows.
Before executing, check that sufficient liquidity exists at each of the three pairs. If your order size exceeds 1-2% of visible order book depth, expect slippage to reduce profit.
Manual arbitrage trading is challenging due to speed requirements. Automated bots can scan continuously, calculate profitability instantly, and execute all three trades in under a second.
Beyond triangular arbitrage on one exchange, look for price differences between exchanges. Buy BTC on Exchange A at $40,000, sell on Exchange B at $40,200. Requires capital on both exchanges.
Beyond trading fees, consider: network fees (for withdrawals), spread between bid/ask prices, opportunity cost of capital, and time spent monitoring. Calculate true net profit after all costs.
Manual traders: Might find 1-3 profitable opportunities per day with 0.5-2% margins. Requires constant monitoring and fast execution.
Automated bots: Can monitor 24/7, catch dozens of opportunities, and execute in milliseconds. Professional arbitrageurs use bots with co-located servers for maximum speed.
Market orders execute immediately at the best available price. When profit margins are healthy (2%+) and time is critical, market orders ensure you capture the opportunity before it disappears.
When margins are tight (0.5-1%) or liquidity is uncertain, limit orders let you specify exact prices. Risk: orders may not fill if prices move, causing you to miss the opportunity entirely.
Don't pause between trades. Execute trade 1, immediately execute trade 2, then immediately trade 3. Delays allow prices to move against you, eliminating profit. Aim for total execution under 10 seconds.
Your first arbitrage trades should use small amounts ($100-500) to learn the process, test execution speed, and understand slippage. Once comfortable, scale up to larger amounts where absolute profits are worthwhile.
After execution, compare actual executed prices to expected prices. If slippage exceeds 0.2-0.3%, your order size may be too large for available liquidity. Reduce amount or choose more liquid pairs.
Trading through exchange APIs (instead of web interface) is faster and allows automation. APIs enable you to check order books, calculate profitability, and execute trades programmatically in milliseconds.
Ensure you have enough balance in Currency A to execute the full arbitrage loop. Insufficient balance causes partial fills or failed trades, leaving you stuck mid-loop with unwanted currency exposure.
Sometimes trades fail or partially fill, leaving you with an intermediate currency. Have a plan: reverse the loop, wait for better rates, or accept a small loss. Don't panic-sell at bad prices.
Professional arbitrageurs use "dry runs" - simulating trades without actually executing to test their systems, measure execution speed, and verify calculations. Once confident, they switch to live trading. Consider paper trading first if you're building an automated system.
Actual execution prices often differ from order book snapshots. Large orders move the market against you. Slippage of just 0.2-0.3% can eliminate profit from a 0.5% opportunity. Always account for slippage.
Prices change in seconds. Network latency, slow API responses, or manual delays can cause rates to shift mid-execution, turning profitable opportunities into losses. Automated bots have massive speed advantage.
Low liquidity means your order can't fill at expected prices. You might get stuck holding unwanted currencies mid-loop. Always verify order book depth before executing, especially for large amounts.
Your order may only partially fill, leaving you with some of Currency A and some of Currency B. This creates unwanted exposure and complicates your position. Market orders reduce this risk.
Exchanges can experience downtime, API failures, or (rarely) be hacked. If an exchange goes down mid-arbitrage, you're stuck. Only use reputable exchanges and don't keep more capital than necessary on any exchange.
Capital used for arbitrage can't be used for other strategies. If you lock up $10,000 earning 0.5% per trade (3-5 trades/day = 1.5-2.5% daily), is this better than holding spot positions or other strategies?
Thousands of arbitrage bots scan markets 24/7. They have co-located servers, faster execution, and better pricing data. Manual traders and slower bots often lose opportunities to faster competitors.
Each trade is a taxable event in many jurisdictions. Frequent arbitrage trading creates hundreds of transactions, complicating tax reporting. You may owe taxes even if overall profit is modest. Track everything meticulously.
Fees: 0.1% (0.075% with BNB) | Liquidity: Excellent |API: Fast, reliable. Best overall for triangular arbitrage due to massive liquidity and many trading pairs.
Fees: 0.5% (taker) | Liquidity: Good for major pairs |API: Reliable. Higher fees but good liquidity and regulatory compliance for US traders.
Fees: 0.16-0.26% | Liquidity: Good |API: Solid. Reputable exchange with reasonable fees and good selection of pairs.
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