Arbitrage is the name given to the process of making profits by taking advantage of the price difference resulting from the imbalance in the markets. The risk taken is significantly reduced by making a profit by taking advantage of the price difference between different markets. Precious metals, currencies, securities, cryptocurrencies, NFT and all similar investment instruments traded in more than one market may have different prices from market to market. Arbitrage is made by buying these investment instruments from a market where they are traded at a low price and selling them at a higher price in another market and making a profit. Although arbitrage is a low-risk transaction, it has become very difficult to do today. Since information exchange has accelerated thanks to digital technologies and the internet, markets can detect price differences very quickly. For this reason, in order to carry out arbitrage, price differences must be thoroughly researched and the transaction must be carried out immediately. One of the fastest and safest methods to arbitrage is to use automated trading systems or computer-based algorithms. These systems are designed to monitor price differences in different markets and take immediate action. However, these systems can be quite complex to use and come with a high cost. For this reason, those who want to do arbitrage must first learn the financial markets, be familiar with different markets and have knowledge about the stock markets. In short, I do not recommend that you start arbitrage without knowing the exchanges and markets well.
