Arbitrage Trading: Profiting from Price Gaps and How Cashback Boosts Your ROI

What is arbitrage trading?

Arbitrage trading is one of the oldest financial strategies, now widely used in the crypto market. The idea is simple: buy low in one place, sell high in another, and profit from the price difference.

For example: if BTC trades at 60,000 USDT on Exchange A but 60,200 USDT on Exchange B, buying on A and instantly selling on B gives you 200 USDT profit per BTC.

In crypto, arbitrage opportunities are frequent because the market runs 24/7 and each exchange has different spreads, liquidity, and fees.

Common types of arbitrage in crypto

1. Cross-exchange arbitrage

Buying on one exchange and selling on another. The most basic and widely used form.

2. Triangular arbitrage

Within the same exchange, exploiting price mismatches between trading pairs, e.g. BTC/USDT → ETH/USDT → ETH/BTC.

3. Futures vs Spot arbitrage

Taking advantage of differences between spot and futures prices. For example, if futures are trading at a premium, traders can short futures and long spot simultaneously.

4. DeFi arbitrage

Using decentralized exchanges (DEX/AMMs) to exploit differences in liquidity pools. Often automated with bots or flash loans.

The real challenge: trading fees eat into profits

Arbitrage sounds attractive, but here’s the catch: fees often decide whether you win or lose.

• Each arbitrage cycle involves multiple trades.
• Maker/taker fees on major CEXs range from 0.04% to 0.1%.
• Triangular or futures arbitrage can rack up 50–70% of profits in fees.
• On DeFi, gas fees and slippage can exceed the arbitrage profit.

👉 In short: arbitrage works, but without managing fees, your strategy may collapse.

Cashback: the secret weapon to maximize arbitrage profits

This is where cashback becomes a game-changer.

Cashback refunds part of the trading fee you pay. For instance, if your taker fee is 0.1% but you receive 50% cashback, your effective fee drops to 0.05%. That’s a direct boost to your net ROI — crucial when arbitrage margins are thin.

Example:

• Arbitrage volume: 100,000 USDT/month
• Average fee: 0.1% → 100 USDT total fees
• With 50% cashback via Long Cashback, you get 50 USDT back

→ Instead of “just reducing costs,” cashback directly turns thin trades into profitable trades. In some cases, cashback can even flip a losing arbitrage into a winning one.

Why Long Cashback is ideal for arbitrage traders

• High rebates: up to 50% fee cashback on 6 major CEXs.
• Transparent payouts: paid in stablecoins (USDT/VND) — instantly usable, no hidden lockups.
• No staking required: unlike exchange discounts that force you to hold platform tokens.
• Multi-exchange support: perfect for cross-exchange arbitrage.
• Clear dashboard: track your trading volume and cashback, compare gross vs. net ROI.

Risks to keep in mind

• Latency: arbitrage opportunities vanish within seconds.
• Liquidity: large trades may not always execute.
• Withdrawal/deposit costs: on-chain fees may kill cross-exchange profits.
• Exchange policies: some platforms restrict excessive arbitrage or wash trading bots.

Conclusion: Arbitrage + cashback = a smarter formula for ROI

Arbitrage is fundamentally a low-margin, low-risk strategy, but only sustainable if you control costs.

Without cashback, you’re leaving half your potential profit on the table.
With arbitrage + Long Cashback, you maximize spreads and reduce trading fees — boosting net ROI without adding market risk.

👉 Smart traders don’t just hunt arbitrage opportunities; they also optimize fees on every trade. That’s exactly what Long Cashback is built for.