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Lesson 5 of 18

What is arbitrage?

Arbitrage is the practice of buying an asset on one venue and selling it on another to capture price discrepancies.

When a token trades at different prices across exchanges, arbitrageurs execute offsetting trades that push prices back into alignment. This activity tightens spreads, improves price consistency, and enhances overall market efficiency.

Arbitrage is not predatory — it is a stabilizing force that helps unify fragmented liquidity across venues.

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