## Understanding Arbitrage Meaning: How Traders Exploit Price Gaps Across Markets
### What Is Arbitrage and How Does It Really Work?
At its core, arbitrage represents a straightforward yet powerful trading strategy: simultaneously purchasing an asset in one marketplace while offloading it in another at a premium. Imagine discovering that Bitcoin trades at $42,000 on Exchange A but $42,300 on Exchange B. A trader executing arbitrage would immediately capitalize on this $300 gap by buying on the cheaper platform and selling on the pricier one. This spread—the difference between purchase and sale
### What Is Arbitrage and How Does It Really Work?
At its core, arbitrage represents a straightforward yet powerful trading strategy: simultaneously purchasing an asset in one marketplace while offloading it in another at a premium. Imagine discovering that Bitcoin trades at $42,000 on Exchange A but $42,300 on Exchange B. A trader executing arbitrage would immediately capitalize on this $300 gap by buying on the cheaper platform and selling on the pricier one. This spread—the difference between purchase and sale
BTC1.05%