Spot and futures arbitrage can look similar on a dashboard, but the mechanics differ. Spot uses real balances; futures uses derivative positions. Knowing which type a signal is tells you which checks matter before entry.
Spot-to-spot arbitrage
Spot-to-spot uses real asset balances and often depends on deposits and withdrawals.
Futures-to-futures arbitrage
Futures-to-futures opens a long on one exchange and a short on another.
Spot-to-futures arbitrage
Spot-to-futures combines both worlds and is useful for basis and funding strategies.
Which checks matter for each
The strategy decides the checklist.
Spot-to-spot uses real asset balances and often depends on deposits and withdrawals. It is easy to understand but can be slow if the trader needs to transfer assets between exchanges.
Futures-to-futures opens a long on one exchange and a short on another. It is faster because no transfer is needed, but it carries margin, funding and liquidation risk.
Spot-to-futures combines both worlds and is useful for basis and funding strategies. Holding spot on one side can reduce liquidation risk, but the futures side still needs margin and reacts to funding.
The strategy decides the checklist. Spot cares about deposits, withdrawals and chains. Futures cares about mark price, funding and margin. Mixed setups care about basis and whether inventory is ready.
Before you trade, identify which of the three setups the signal is and apply the matching checks.
Spot-to-spot is usually the easiest to understand because it uses real balances and no leverage, but transfers can make it slow. Futures setups are faster but add leverage and funding risk.
It is common for basis and funding strategies. Holding spot on one side can reduce direction and liquidation risk while the futures side captures funding or the basis.
Read the market type on the signal. It tells you whether each leg is spot or futures, which then decides the checks you run before entry.
Dashboard / Execution
Understand the three execution numbers: what it costs to open a trade, what it costs to close it, and what an immediate round-trip would look like.
ReadRisk / Execution
Learn why an opportunity can look profitable on screen but fail during execution because the order book is too thin or the trade size is too large.
ReadRisk / Safety
A practical risk guide for crypto arbitrage: position sizing, leverage, liquidity, exchange issues, funding changes, and when to avoid a trade.
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