ELI5 mode
Arbitrage is the practice of buying an asset in one market at a lower price and simultaneously selling it in another market at a higher price, thereby locking in a risk-free profit from price discrepancies. This strategy exploits temporary market inefficiencies and is a cornerstone of modern finance, though it's become lightning-fast with algorithms, making it accessible to high-tech traders but fleeting for manual operators.
AI-generated·