Arbitrage

Arbitrage trading is a strategy that seeks to profit from price differences for the same asset in different markets.
Simple Example
Imagine a share of stock is trading at:
• $100 on Exchange A
• $101 on Exchange B
An arbitrage trader could:
1. Buy the stock on Exchange A for $100.
2. Immediately sell it on Exchange B for $101.
The difference ($1 per share, minus fees) is the arbitrage profit.


Menu