A flash loan arbitrage bot has several main components: Opportunity Detection, Loan Execution, Trade Execution, and Profit Calculation. In flash loan arbitrage bot development, these components work together to identify price differences across exchanges, instantly borrow funds without collateral, execute quick buy-sell trades, and repay the loan within seconds. The bot calculates potential profits in advance to ensure positive returns after fees, automating the entire arbitrage process seamlessly for quick, efficient trading in volatile markets.
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