What is Arbitrage

Arbitrage is a trading opportunity where the trader buys an asset and sells it immediately, exploiting price differences in different marketplaces. The price mismatch exists because of market inefficiencies, creating an opportunity for traders to profit and close the price gap of the asset. Arbitrage opportunities exist in many markets, such as the crypto, stock, and forex markets.

Arbitrage

Arbitrage is the trading action that exploits price differences of the same asset in different markets.

Related terms

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