What is arbitrage?

Binance Academy · 2023-02-17T06:48:51.000Z

In brief Arbitrage is a relatively low-risk trading strategy that takes advantage of price differences between markets. In most cases, this involves buying and selling the same asset (like Bitcoin) on different exchanges. Since the price of Bitcoin on Binance and on another exchange should theoretically be the same, any price difference between these two exchanges is a potential arbitrage opportunity.