<p>Well... All of the top crypto exchanges like Binance have their inner arbitrage system. They may execute the best orders without putting them in the order book. They take the best arbitrage opportunities. So regular users like you and me can't benefit from such orders. This inner arbitrage is very profitable for the exchanges.</p>
<p>Maybe this is why you see what you see.</p>
<p>Actually, most of the top exchanges work like &quot;Grey Boxes&quot;. We don't know what's happening inside... But they take all the best oportunities anyway.</p>

CC BY-SA 4.0
2021-04-18T07:57:34.403Z
Yeah, I know a founder of 50x.com crypto exchange. He is a very smart developer. He knows about crypto exchanges a lot. He has developed the first Any-to-Any crypto exchange in the world.

Here is my referral link: https://go.50x.com/60797

He told me about inner arbitrage a lot.
Hans Holder
CC BY-SA 4.0
2021-04-18T08:03:56.693Z
He told me all these things about this "inner" arbitrage. By the way, such arbitrage is impossible on 50x.com because the trading core of the exchange always "seeks" for better execution opportunities itself. A user always gets the best possible order execution.
Hans Holder
CC BY-SA 4.0
2021-04-15T18:04:44.850Z
Thanks for your answer. I have considered this option as well. Do you have any sources to support these claims?
Johannes
CC BY-SA 4.0
2021-04-15T10:35:43.633Z
2021-04-15T10:35:43.633Z
Hans Holder
<p>I have observed different crypto exchanges for quite some time now and analyzed the potential for different kinds of arbitrage. However, I don't quite understand what I am seeing.</p>
<p>Examples:</p>
<ol>
<li>Observing Poloniex and Binance web socket streams for the same symbol, it seems like most of the time Poloniex lags behind Binance but it generally moves the same way. Interestingly, these price movements occur without any (visible) trades happening. What could cause this effect? Who makes money from this if there are no trades?</li>
<li>Triangular arbitrage rarely seems profitable within one exchange. I would expect that multiple symbols on a smaller exchange like Poloniex would need some time to return to balance after a major price movement. However, it seems like markets adjust faster than the real-time web socket API will let me look at the situation (1ms latency).</li>
</ol>
<p>The attached image (sorry, didn't find a bigger one in my files) shows Binance (blue) and Poloniex (green) prices moving. There are no trades on Poloniex during this time.</p>
<p><a href="https://i.sstatic.net/y02Cv.png" rel="nofollow noreferrer"><img src="https://i.sstatic.net/y02Cv.png" alt="enter image description here" /></a></p>

<exchanges><trading><exchange-rate><arbitrage><statistics>
What causes synchronous price movement within and between crypto exchanges without matching trades?
Johannes
# What causes synchronous price movement within and between crypto exchanges without matching trades?

(Asked by: username_0 on 2021-04-14)

I have observed different crypto exchanges for quite some time now and analyzed the potential for different kinds of arbitrage. However, I don't quite understand what I am seeing.

Examples:

1. Observing Poloniex and Binance web socket streams for the same symbol, it seems like most of the time Poloniex lags behind Binance but it generally moves the same way. Interestingly, these price movements occur without any (visible) trades happening. What could cause this effect? Who makes money from this if there are no trades?
2. Triangular arbitrage rarely seems profitable within one exchange. I would expect that multiple symbols on a smaller exchange like Poloniex would need some time to return to balance after a major price movement. However, it seems like markets adjust faster than the real-time web socket API will let me look at the situation (1ms latency).

The attached image (sorry, didn't find a bigger one in my files) shows Binance (blue) and Poloniex (green) prices moving. There are no trades on Poloniex during this time.

[![enter image description here](https://i.sstatic.net/y02Cv.png)](https://i.sstatic.net/y02Cv.png)

**Tags:** exchanges, trading, exchange-rate, arbitrage, statistics


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## 1 answers

### Answer by username_1 on 2021-04-15. Score: 0

Well... All of the top crypto exchanges like Binance have their inner arbitrage system. They may execute the best orders without putting them in the order book. They take the best arbitrage opportunities. So regular users like you and me can't benefit from such orders. This inner arbitrage is very profitable for the exchanges.

Maybe this is why you see what you see.

Actually, most of the top exchanges work like "Grey Boxes". We don't know what's happening inside... But they take all the best oportunities anyway.

> **Comments:**
> **username_0**: Thanks for your answer. I have considered this option as well. Do you have any sources to support these claims?  
> **username_1**: Yeah, I know a founder of 50x.com crypto exchange. He is a very smart developer. He knows about crypto exchanges a lot. He has developed the first Any-to-Any crypto exchange in the world.  Here is my referral link: https://go.50x.com/60797  He told me about inner arbitrage a lot.  
> **username_1**: He told me all these things about this "inner" arbitrage. By the way, such arbitrage is impossible on 50x.com because the trading core of the exchange always "seeks" for better execution opportunities itself. A user always gets the best possible order execution.  

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