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Arbitrage

The practice of buying and selling an asset on different platforms or markets to profit from price differences. Basically, Per is selling apples for $3 per kilo. You buy a kilo. Then you go to Olle, who is buying apples at $3.1 per kilo. You just made 10 cents. Or, you buy a comb for $3, exchange it for a hammer, which you exchange for a screwdriver, which you exchange for a comb and a ribbon. Because a screwdriver is worth slightly more than a comb you also get the ribbon. Only, what you’re likely doing is exchanging USD to GBP to EUR to USD and end up with a little bit more than what you started with. Keep reading for a more in-depth understanding of arbitrage and how to make it work for you in the world of trading and crypto.
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