Crypto Arbitrage Interview Guide
Crypto arbitrage interview guide for cross-venue pricing, latency, fees, settlement, inventory, execution risk, and caveats.
Candidates discussing apparent price differences across digital-asset venues.
Arbitrage needs executable economics
A price difference is not enough. Crypto arbitrage answers should include fees, latency, size, transfer constraints, venue risk, inventory, and settlement.
Inventory often replaces transfers
Moving assets between venues may be slow or risky, so practical examples often require pre-positioned inventory and risk limits on each venue.
Concrete example
If BTC is cheaper on one exchange and richer on another, the trade still depends on depth, fees, stale quotes, withdrawal status, and the ability to hedge or rebalance inventory.
Risk remains after the trade
The position can face leg risk, failed execution, venue outages, custody issues, basis movement, and delayed settlement. Name residual risks explicitly.
Common mistakes
Candidates often call every price gap free money. A stronger answer asks whether both legs can be executed at size after all costs and controls.
Practice the pattern
Use the LeetQuidity curriculum and calibration to turn this topic into a focused practice plan.