What is Arbitrage?
Arbitrage refers to the practice of taking advantage of price differences for the same asset across different markets. In cryptocurrency trading, arbitrage opportunities arise when a digital asset is priced lower on one exchange compared to another. Traders can buy low on one platform and sell high on another, profiting from the difference.
How to use the term?
You could say: "Many traders engage in arbitrage by monitoring price discrepancies between multiple exchanges."
Disclaimer:
It is highly recommended to conduct thorough research prior to making any financial decisions. Please note that this article's purpose is solely for educational purposes and the author and the organization, M2, do not influence the reader's investment or trading choices.