Definition of Arbitrage

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.

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Related Terms

Margin Trading

It is a way of investing by borrowing money from a broker (or in crypto, an exchange or platform) to trade

Block Height

A number that is used to indicated the position of a particular block within a blockchain

Hot Wallet

It is a tool that store your cryptocurrencies and always connected to internet

Stop-loss Order

Conditional market order to sell at the next available price, excuted if the price of an asset falls below set-upon limit

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