What is standard cross-exchange arbitrage trading?
Could you please elaborate on what standard cross-exchange arbitrage trading entails? I'm interested in understanding the CORE principles and mechanics behind this trading strategy. Specifically, how does it involve trading cryptocurrencies across multiple exchanges? Does it rely on price differences between exchanges to generate profits? And what are the risks and challenges that traders need to be aware of when executing cross-exchange arbitrage trades? I'd appreciate a concise yet thorough explanation of this trading technique.
What is crypto cross-exchange arbitrage?
Could you elaborate on the concept of crypto cross-exchange arbitrage? I've heard about arbitrage opportunities in traditional finance, but how does it translate to the world of cryptocurrencies? Specifically, I'm interested in understanding how traders capitalize on price differences across different cryptocurrency exchanges. Does it involve buying an asset on one exchange at a lower price and then selling it immediately on another exchange for a higher price? Could you provide a brief overview of the process, as well as any potential risks involved in pursuing such strategies?