Arbitrage Access
Arbitrageurs exploit market inefficiencies—temporary glitches where supply and demand levels differ across exchanges.
: This activity actually helps the market by narrowing price gaps, eventually driving prices toward efficiency. Common Strategies arbitrage
: A trader (often a computer) finds a price difference for the same asset on two different exchanges. While often described as "free money," several factors
While often described as "free money," several factors can erase profits: Key Risks & Challenges
: Buying a convertible security (like a bond) and shorting the underlying stock to profit from mispriced options.
: Buying and selling the exact same financial instrument (like a stock or currency) across different exchanges.
: Buying physical goods (e.g., collectibles, thrift store finds) in one location to sell immediately for a higher price on another platform. Key Risks & Challenges