Cross-Exchange Arbitrage

Cross-Exchange Arbitrage is a sophisticated trading strategy that exploits temporary price discrepancies for the same financial instrument, such as a currency pair or a derivative, across two or more distinct exchanges or trading venues. This high-frequency technique involves simultaneously buying the asset on the exchange where it is priced lower and selling it on the exchange where it is priced higher, locking in a risk-free profit from the difference, net of transaction costs.