Lumpa Insights
Arbitrage
P2P arbitrage basics: spreads, fees and execution risk
A positive cross-exchange spread is a starting signal, not guaranteed profit.
9 min Updated 2026-08-24
Two legs create two sets of constraints
A cross-P2P spread requires an executable buy and an executable sell. Each leg has its own price, merchant, payment method, limits and timing risk.
Raw spread is not net return
Withdrawal fees, network choice, fiat-transfer costs, order limits, conversion spreads, price movement and settlement latency can erase an apparently attractive percentage.
- Model both legs at the same realistic size.
- Include transfer and conversion costs.
- Check whether liquidity survives the intended order size.
- Treat timing risk as part of execution, not an afterthought.
Why Lumpa Spreads stays separate from Best Rate
Best Rate answers one transaction question. Arbitrage combines two transactions. Keeping them separate prevents a simple rate comparison from being mistaken for a profit recommendation.
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.