what is arbitrage

what is arbitrage is a trading strategy that involves exploiting price. Discrepancies of an asset across different markets or exchanges to make a profit. Traders identify opportunities where the same asset is priced differently in two or more markets. Them to buy low in one market and sell high in another simultaneously. This process capitalizes on inefficiencies in pricing and ensures that prices across markets remain closely aligned. Arbitrage opportunities often arise due to differences in supply and demand, transaction costs, or trading delays between markets. By executing arbitrage trades quickly and efficiently, traders can profit from these price differentials while minimizing risk. Understanding it and its mechanisms is crucial for traders seeking to capitalize on market inefficiencies and generate consistent returns in various financial markets.