ArbiHunt is designed to simplify the process of identifying profitable arbitrage trades, but understanding the metrics and data presented is crucial to making informed decisions. This guide will explain how to interpret the arbitrage opportunity table and metrics, including liquidity scores, bid-ask spreads, and profitability percentages.

Understanding the Arbitrage Opportunity Table #

The arbitrage opportunity table is the core feature of ArbiHunt, showcasing real-time opportunities for profit across exchanges. Each row represents a trade, and every column provides key details you need to evaluate the opportunity.

Key Metrics Displayed #

• Token/Pair: This indicates the cryptocurrency pair involved in the trade. For example, BTC/USDT or ETH/USDT.
• Buy Exchange: The exchange where the asset can be bought at a lower price.
• Sell Exchange: The exchange where the asset can be sold at a higher price.
• Buy Price: The lowest price at which the asset can be purchased on the buy exchange.
• Sell Price: The highest price at which the asset can be sold on the sell exchange.
• Profit Percentage: The potential profit from executing the trade, shown as a percentage of the trade value after accounting for the price difference between the exchanges.
• Liquidity Score: A measure of how much of the asset is available for trading without significantly impacting the price. This is calculated by dividing the lower 2% spread liquidity from both sides of the trade by 1000.
• 2% Spread Liquidity: The volume of orders in USDT that would move the price by 2%.

Evaluating Liquidity Scores #

Liquidity scores help you determine whether the market can handle your trade size without major slippage.

• High Liquidity: Indicates a market with sufficient volume, meaning your trade can likely be executed at the listed price.
• Low Liquidity: Suggests limited volume, which may cause price fluctuations when executing trades. This is especially important for larger trade sizes or low-cap coins.

Practical Example of Liquidity #

If the liquidity score for a token is 10, this means approximately $10,000 worth of the token can be traded within the 2% price spread. If your trade size is $8,000, the liquidity is more than adequate. However, if your trade size is $20,000, low liquidity could result in slippage.

Calculating Profitability Percentages #

The profitability percentage is the key metric in evaluating whether a trade is worth executing.

Formula Used in ArbiHunt #

This percentage is calculated after factoring in price differences between exchanges but does not account for withdrawal and deposit fees. Always consider these costs when finalizing a trade.

Example #

• Buy Price: $100
• Sell Price: $105
• Profit Percentage: 5%

A 5% profit might seem appealing, but if withdrawal fees are $3, your net profit shrinks significantly. ArbiHunt highlights these scenarios, so you can make informed decisions.

How ArbiHunt Simplifies Interpretation #

ArbiHunt is designed to help you focus on actionable opportunities by:

• Real-Time Filtering: Allowing you to sort and filter trades based on profitability, liquidity, and spread.
• Visual Indicators: Highlighting high-profit and low-liquidity trades for easy identification.

Tips for Interpreting and Acting on Data #

• Start Small: Test with smaller trade sizes to understand how liquidity and fees affect your profits.
• Use Filters: Narrow your search by focusing on trades with high liquidity and narrow spreads.
• Factor in Fees: Always calculate the impact of trading, withdrawal, and deposit fees on your profit.

When to Proceed with a Trade #

Evaluate trades that:

• Have a profitability percentage above your minimum threshold after considering fees.
• Show adequate liquidity for your trade size to avoid slippage.
• Fast network with fees that still guarantee you make a profit on your trade.

By interpreting the data effectively, you can maximize your profit potential and minimize risks. ArbiHunt’s tools and metrics empower you to make well-informed decisions, ensuring that even beginners can navigate the complexities of arbitrage with ease.