Arbitrage

Profiting from price differences for the same asset across markets.

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What is arbitrage?

Arbitrage is buying an asset in one market and selling it in another to benefit from a difference in price. In crypto, the same coin can trade at slightly different prices across exchanges at the same moment.

Things to keep in mind

These gaps are usually small and can close quickly as others act on them. Fees, transfer times and price moves during the trade can all reduce or remove the difference.

Related terms

The prices buyers offer and sellers accept for an asset.

The gap between the highest buy price and the lowest sell price.

A prolonged period of rising prices and positive sentiment.

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Start investing today

Your Luno app makes investing straightforward, with a clear and intuitive app experience we know you’ll love.