On WunderTrading, you can buy assets on one exchange and sell them on another using the Spreads and Arbitrage trading terminal. This tool can be divided into two strategies: Spread Trading and Arbitrage.

Spread trading in crypto is a strategy where a trader buys one cryptocurrency and sells another at the same time to profit from the difference in their prices — this difference is called the spread. The goal is to profit from the difference in price movements between two related cryptocurrencies.

Arbitrage trading in crypto is a strategy where you buy a cryptocurrency at a lower price on one exchange and sell it at a higher price on another, making a profit from the price difference — called the arbitrage. The goal is to profit from price discrepancies of the same coin across different exchanges.

The Spreads and Arbitrage terminal consists of three important sections:

Let’s explore each section in detail.

The Spreads and Arbitrage Trading Terminal allows users to execute arbitrage and spread strategies across two exchanges.
1. First, select the Base (where assets will be bought) and Quote (where assets will be sold) exchanges.
2. Choose whether to apply leverage to the selected pairs
3. Enter the Amount per trade and adjust the slider to allocate balance between two pairs.

4. Choose the Order type (Market, Stop market, Two-leg entry).

1. You can set up to 6 Take Profit targets for your strategy.

2. Choose whether you want to add Stop Loss as a percentage or a fixed price, then input the Stop Loss value.

3. The next parameter is Move Stop Loss to breakeven. Once the activation target is reached, the Stop Loss will be automatically move to the execution target, minimizing the risk of loss.
• Activation: The percentage at which this function is triggered.
• Execution: The percentage from the entry price where the Stop Loss will be adjusted.

4. The Trailing Stop has two parameters: Activation Price (Trailing Stop Activation) and Trailing stop (Trailing Stop Execute). The first determines the level at which the trailing stop becomes active. The second is the actual trailing stop. Once the activation price is reached, this becomes the starting point. If the price continues to rise, the trailing stop will follow in the same direction.

5. A Reduce-Only order is a type of order that only reduces an existing position, preventing the opening of a new position in the opposite direction. It ensures that the trader's actions will not increase their overall exposure, effectively limiting the potential for over-leveraging or unintended positions.

The Spreads and Arbitrage chart is created by dividing the Left chart (Base currency) by Right chart (Quote currency). For example, dividing ETH/USDT by BTC/USDT prices. The chart also includes a hedge ratio. Adjusting the hedge ratio will automatically update the spread chart.

Statistical Arbitrage Signals is a tool designed to generate trading signals that help identify optimal entry points and detect price correlations between two different asset pairs. It is integrated into the Spreads and Arbitrage Trading Terminal and supports position entry based on three key parameters: Beta (hedge ratio), Half-life, and Z-score.

The Percentile at the top of the Statistical Arbitrage Signals section allows you to filter alerts to match your specific trading preferences. A percentile is a measure used in statistics to indicate the value below which a given percentage of observations in a group falls.

Example:
Suppose you took a test and your score was in the 80th percentile. This means:

You can adjust the Percentile to 1%, 5% or 10%.
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You can also set up alerts for the Statistical Arbitrage signals. There are three types of alerts available in the Settings: