Picture this: you deploy capital that isn't yours to acquire assets at a lower price point, then liquidate them at a premium. The spread? That goes straight to your wallet. The actual capital provider gets nothing from the upside. This arbitrage dynamic sits at the heart of how trading profits get extracted—leverage and positioning create wealth transfer scenarios where returns flow to the operator, not the funding source.
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
Picture this: you deploy capital that isn't yours to acquire assets at a lower price point, then liquidate them at a premium. The spread? That goes straight to your wallet. The actual capital provider gets nothing from the upside. This arbitrage dynamic sits at the heart of how trading profits get extracted—leverage and positioning create wealth transfer scenarios where returns flow to the operator, not the funding source.