Arbitrage

Arbitrage is profiting from a price difference between related instruments or venues. It is the mechanism that keeps prices consistent, and it is lawful — arbitrage exploits a real discrepancy rather than creating a false one.

instruments and markets · updated 2026-09-08

See also

• Basis — The basis is the difference between an asset's cash price and the price of a derivative on it. Basis relationships are normally ar…
• Latency arbitrage — Latency arbitrage is profiting from being able to act on a price change before slower participants can update their own quotes. It…

Back to the full glossary — 261 defined terms.