Arbitrage

Arbitrage is the practice of profiting from the same asset trading at different prices in different places, for example when a coin is quoted higher on one exchange than another, or when a perpetual futures contract drifts away from spot. Buying on the cheaper venue and selling on the dearer one pushes the two prices back together, which is why arbitrage is the main force keeping crypto prices consistent across a fragmented market. In practice the opportunity is narrow: trading fees, withdrawal delays, network congestion, slippage and exchange risk can erase a small gap, and prices can move while capital is in transit between venues.