How Much Capital Do You Need to Start Arbitrage
The most common question from beginners is: “how much do I need to get in?”. The honest answer is that you can start small, but there are practical limits worth knowing beforehand.
What your capital needs to cover
- Margin on both legs: each exchange requires margin for its position.
- Safety buffer: free balance to withstand swings without bringing liquidation closer.
- Minimum order size: each coin has a minimum value per contract and per order.
- Tool credits: on Multi Arbitrage, the first top-up is $30. See how pricing works.
Example calculation
Suppose a $500 position on each leg, with 5x leverage. The margin required on each exchange is $100. Adding a 100% buffer (to keep liquidation far away), the ideal would be to have about $200 on each exchange, or $400 in total.
| Position per leg | Leverage | Margin per exchange | With a 100% buffer |
|---|---|---|---|
| $200 | 5x | $40 | $80 |
| $500 | 5x | $100 | $200 |
| $1,000 | 5x | $200 | $400 |
| $1,000 | 2x | $500 | $1,000 |
Illustrative values. The ideal buffer depends on the coin’s volatility and your profile.
The weight of fees on small amounts
Fees are proportional to the amount, but some costs are fixed or have minimums, and the effect of the spread is larger on small orders. In addition, the dollar gain on a small position is also small: $0.50 per payment on a $1,000 position is not much. That does not mean it is not worth it, but you need realistic expectations. See how to calculate funding rate profit.
How to start
- Start with an amount you are willing to lose, even if it is small.
- Use low leverage and isolated margin.
- Make only a few trades to learn how the bot behaves.
- Increase the amount only after you understand the real results, including fees and funding.
The strategy does not promise a fixed return. Also see extra income from crypto on autopilot and the risks of funding rate arbitrage.
Realistic goals
Arbitrage trades have a moderate return. Instead of thinking about how much it will “earn per month”, think about how much you are willing to leave idle as margin and what return makes sense for that risk. If an account with $400 earns a few dollars a day on good days, that may not be what you expect. Adjust your expectations first.
Does it make sense to start with the minimum?
Yes, as a test. Starting with the minimum lets you understand the bot, check the real fees, see the funding actually paid and test the protections, all with little risk. Only then is it worth deciding whether to scale up.
Related guide: automated extra income with crypto. See also all the crypto arbitrage guides.
Frequently asked questions
Is there a minimum amount to use the bot?
The system respects each exchange’s and each coin’s minimum order sizes. Very low amounts may be rejected for that reason.
Do I need the same amount on both exchanges?
Generally yes, since the positions are the same size. Keep the balances even.
How much should I keep in reserve outside the exchanges?
Ideally, keep a personal reserve outside crypto. Only invest what you will not miss in your budget.
Start with $30 in credits
Connect your exchanges with keys that can't withdraw and let the bot work. You pay 30% of the profit, and only when there is a profit.
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This content is for information only and is not investment advice. Trading crypto derivatives involves a high risk, including the total loss of your capital. Past results do not guarantee future results, and the figures mentioned are examples. Before trading, check whether trading crypto derivatives is allowed in your country and what your tax obligations are. Assess whether the product suits your profile before investing.