Arbitrage

By CoinGecko | Updated on Mar 03, 2020

A practice of taking advantage of differences in price of the same commodity in two or more markets or exchanges. For example, cryptocurrency prices on Korean exchanges can be different from those on US exchanges. An arbitrage trader would be in both markets in order to buy in one and sell in another for profit.

Share this with a friend!

Related Terms

Immutable

A property characterized by inability to be change and stays unchanged over time.

Full node

Full Nodes are computers that verify the set of rules that are built into the protocols of a given cryptocurrency.

Difficulty

A relative measure on how difficult it is to correctly guess a new block

Smart contracts

Self executing contracts on the blockchain without needing human executors or notary.

Hungry for more knowledge?

Back to Glossary or Subscribe to our newsletter.