https://blazed.sh/blog/tags/trading/ Recent content in Trading on BLAZED.sh Blog Hugo en-us Sat, 31 May 2025 10:00:00 +0000 https://blazed.sh/blog/posts/tri_arbitrage/ Sat, 31 May 2025 10:00:00 +0000 https://blazed.sh/blog/posts/tri_arbitrage/ <h2 id="welcome-to-arbitrage-basics">Welcome to Arbitrage Basics</h2> <p>This blog post series covers the math, finance, and programming behind arbitrage trading. In this first post, we&rsquo;ll walk through the basics and write a simple arbitrage script in JS. It won&rsquo;t generate real profits, but understanding the fundamentals is key before building something that can.</p> <h2 id="the-most-basic-kind-of-arbitrage-triangular-arbitrage">The most basic kind of Arbitrage: Triangular Arbitrage</h2> <p>Triangular arbitrage exploits price discrepancies between three trading pairs to generate profits. Start with ETH, trade it for LINK, then LINK for SHIB, then SHIB back to ETH. If exchange rates are misaligned, you end up with more ETH than you started with. The profit comes from temporary price inefficiencies caused by large trades or slow arbitrage by other traders.</p>