> ## Documentation Index
> Fetch the complete documentation index at: https://condor.hummingbot.org/llms.txt
> Use this file to discover all available pages before exploring further.

# Arbitrage Executor

> Simultaneous execution across markets for arbitrage profits

The **Arbitrage Executor** captures price discrepancies between markets by simultaneously executing buy and sell orders, particularly useful for CEX-DEX arbitrage.

## Overview

| Property       | Value                                   |
| -------------- | --------------------------------------- |
| Position Type  | Spot                                    |
| keep\_position | Configurable                            |
| Use Cases      | CEX-DEX arbitrage, cross-market spreads |

## Configuration

```python theme={null}
from hummingbot.strategy_v2.executors.arbitrage_executor.data_types import (
    ArbitrageExecutorConfig,
    ExchangePair,
)

config = ArbitrageExecutorConfig(
    controller_id="my-agent",
    buying_market=ExchangePair(
        exchange="uniswap_polygon_mainnet",
        trading_pair="WMATIC-USDT",
    ),
    selling_market=ExchangePair(
        exchange="binance",
        trading_pair="MATIC-USDT",
    ),
    order_amount=Decimal("500"),        # In base asset
    min_profitability=Decimal("0.004"), # 0.4% minimum
)
```

## Parameters

| Parameter           | Description                     |
| ------------------- | ------------------------------- |
| `buying_market`     | Exchange and pair for buy side  |
| `selling_market`    | Exchange and pair for sell side |
| `order_amount`      | Amount in base asset            |
| `min_profitability` | Minimum profit threshold        |

## How It Works

1. **Validation**: Confirms trading pairs are interchangeable
2. **Price Comparison**: Monitors prices on both markets
3. **Profitability Check**: Calculates profit after all fees
4. **Simultaneous Execution**: Places both orders when profitable
5. **Tracking**: Records fill prices and actual profit

## CEX-DEX Arbitrage

Common use case is arbitraging between centralized and decentralized exchanges:

```python theme={null}
cex_dex_arb = ArbitrageExecutorConfig(
    controller_id="cex-dex-arb",
    buying_market=ExchangePair(
        exchange="jupiter",  # DEX
        trading_pair="SOL-USDC",
    ),
    selling_market=ExchangePair(
        exchange="binance",  # CEX
        trading_pair="SOL-USDT",
    ),
    order_amount=Decimal("10"),
    min_profitability=Decimal("0.005"),
)
```

## Token Interchangeability

The executor validates tokens are equivalent:

| Check                  | Example                    |
| ---------------------- | -------------------------- |
| Same token             | MATIC = MATIC              |
| Wrapped equivalents    | ETH = WETH                 |
| Stablecoin equivalents | USDT ≈ USDC (configurable) |

## Profitability Formula

```
Buy Cost = Buy Amount × Buy Price + Buy Fees + Gas
Sell Revenue = Sell Amount × Sell Price - Sell Fees

Net Profit = Sell Revenue - Buy Cost
Profitability = Net Profit / Buy Cost

Execute if: Profitability > min_profitability
```

## Example: Polygon MATIC Arbitrage

```python theme={null}
matic_arb = ArbitrageExecutorConfig(
    controller_id="matic-arb",
    buying_market=ExchangePair(
        exchange="uniswap_polygon_mainnet",
        trading_pair="WMATIC-USDT",
    ),
    selling_market=ExchangePair(
        exchange="binance",
        trading_pair="MATIC-USDT",
    ),
    order_amount=Decimal("1000"),
    min_profitability=Decimal("0.004"),
)
```

## Considerations

| Factor          | Impact                             |
| --------------- | ---------------------------------- |
| **Gas Costs**   | DEX trades have variable gas costs |
| **Slippage**    | Large orders may move price        |
| **Bridge Time** | Cross-chain requires bridging      |
| **Latency**     | Speed matters for volatile spreads |