TradingIntermediate

Arbitrage

Attempting to capture price differences between related assets, markets or trading routes.

PLAIN-ENGLISH DEFINITION

In more detail

Fees, execution delays, inventory and failed settlement can remove the apparent profit. Arbitrage can help align prices but is not risk-free.

PUT IT IN CONTEXT

A practical example

A trader buys an asset in one pool and sells it in another at a higher price.

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Educational explanation based on the linked documentation. Protocol details can evolve. Sources & standards