Cross-Exchange Spread Analysis

Cross-exchange spread analysis involves comparing the bid and ask prices of an asset across multiple platforms to identify potential imbalances. This analysis helps traders understand where liquidity is most concentrated and where the best prices can be found.

It is a fundamental step in designing effective aggregation and routing strategies. By identifying consistent spreads, traders can uncover hidden patterns in market behavior and predict where the next move might occur.

This analysis is also used to assess the health of the broader market and the efficiency of different exchanges. It provides a macro view of how liquidity is distributed and how well the various parts of the ecosystem are connected.