In the crypto world, sensational events frequently emerge. Whether it’s a project or a coin, as long as it has sparked attention or once had high popularity, it can attract tremendous focus and discussion in the crypto space. Recently, a hot topic has emerged — the second fork of BCH. BCH had already attracted huge attention during its first fork, and this second fork has once again grabbed the spotlight. Many are now focusing on how to profit from this fork event.

What is the BCH fork?

On November 15th, BCH is expected to undergo a hard fork. According to OKX rules, the chain with the higher-priced forked token will retain the BCH name, while the other chain will be renamed. If you hold a certain amount of BCH before the snapshot, you will receive the same amount of tokens (1:1) on the new chain, which will have market value.

How to arbitrage?

Forks have always been seen as opportunities for market arbitrage, where traders can take advantage of the rules to profit. Major exchanges have already issued announcements regarding the BCH fork, and the price of BCH has surged in response. With the rules clarified, the next step is how to capitalize on the fork.

Here are the main methods of fork arbitrage:

1. Spot Arbitrage
   Before exchanges suspend spot trading, buy BCH spot and short 1x leverage BCH perpetual futures for hedging. This prevents losses from price drops post-fork. When opening futures positions, pay attention to the contract specifications. After the fork, you’ll hold the new BCH and receive airdropped tokens. Since there’s no liquidation risk and you can gain airdrops, this method has relatively fewer platform restrictions and offers strong potential for profit.

2. Contract Arbitrage
   Currently, many platforms list BCH quarterly futures at a discount, while perpetual futures are close to spot prices. You can go long on the BCH quarterly futures and short the BCH perpetual futures. Before the fork, the quarterly futures tend to reflect post-fork prices early, while perpetual futures track spot prices. After the fork, the premium gap will shrink, allowing you to profit. However, since these positions don’t share margin and price volatility is high, there’s a risk of liquidation. Proceed cautiously.

3. Lending Arbitrage
   Another strategy involves borrowing BCH before the fork and repaying it along with interest afterward. If the value of the airdropped token exceeds the interest cost, you profit; otherwise, you lose. As borrowing interest is very low, this method often yields profits. However, price swings could lead to liquidation, so excessive leverage should be avoided. Platform policies vary — some force repayment before the fork or require returning the airdrop. Thus, this method has uncertainties and higher risks, and should be executed based on specific platform rules.

Conclusion:
There are many arbitrage methods in crypto, but most — such as cross-exchange arbitrage — require professional teams to perform low-risk or risk-free trades. Manual arbitrage opportunities are rare, especially with mainstream coins like BCH. Recently, the overall market has soared, boosting investor confidence in major assets. After the BCH fork, whether the price stabilizes or surges depends on future developments. Let’s wait and see.