Spread Capture

Category: finance

The act of simultaneously buying an asset in one venue and selling it in another to bank the price difference.

Spread capture is the core execution loop of arbitrage. The "spread" is the net profit after accounting for exchange fees, network gas costs, and currency conversion. Modern systems execute this in milliseconds to minimize "leg risk"—the chance that one side of the trade fills while the other fails or moves against you.

Common Examples

• Our algorithm is tuned for sub-millisecond spread capture, ensuring we exit the trade before the exchange order books can rebalance.
• If the transaction fee exceeds the spread capture potential, the bot automatically flags the trade as non-viable to prevent capital erosion.