If the same thing has a different price in two different places, you can
profit by buying it at the cheaper place and selling it at the more
Arbitrage is the practice of taking advantage of a
price difference between two or more markets.
For example, if you find
that stocks from some company are traded at a lower price in one market
than in others, then you can buy those stocks at that market and sell
them in the other markets at a higher price, thus making a profit from
the price difference. That’s what arbitrage is.
An exchange arbitrage is
a commonly known trading strategy based on the differences between the
price for the same asset at different exchanges (the price difference is
Arbitration remains a very interesting area of
By limiting risks to a minimum, the operator can generate
substantial profits by multiplying small capital gains.
remains much less mediatized than traditional trading. Moreover,
arbitrage helps to correct market imperfections and helps markets to
achieve perfect efficiency while improving their liquidity.