Lumpa Insights
Arbitrage
P2P arbitrage basics: spreads, fees and execution risk
Understand what a cross-exchange spread means and why a positive percentage is not automatically profit.
9 min Updated 2026-08-23
A spread is a starting point
A simple cross-P2P spread compares a lower buy quote with a higher sell quote. The raw percentage does not include every cost or delay between the two legs.
What can reduce the spread
Transfer fees, network selection, exchange withdrawal rules, payment costs, price movement, order limits and execution latency can all reduce or eliminate the apparent opportunity.
- Crypto withdrawal or network fees.
- Fiat payment costs or bank restrictions.
- Different merchant limits on each leg.
- Price changes while moving between exchanges.
Why Lumpa Spreads is separated from Best Rate
A rate scanner answers where one trade looks strongest. An arbitrage scanner compares two different execution legs. Keeping them separate makes the risk and logic easier to understand.
This material explains comparison mechanics and P2P execution factors. It does not guarantee price, liquidity, merchant performance or profit. Confirm all transaction details on the exchange.