Arbitrage
Profiting from price differences of the same asset across different markets or venues.
In-Depth Explanation
Arbitrageurs buy low on one exchange and sell high on another, earning risk-free profit while equalizing prices across markets. In DeFi, arbitrage is often automated and competitive—MEV searchers and bots capture most opportunities within milliseconds. Arbitrage is essential for market efficiency.
Related Terms
More in Trading & Markets
View all →Slippage
The difference between the expected price of a trade and the actual executed price.
Maximal Extractable Value
MEVValue that can be extracted by reordering, inserting, or censoring transactions within a block.
Sandwich Attack
An MEV extraction technique where an attacker places transactions before and after a victim's trade to profit from the price impact.
Frontrunning
Placing a transaction ahead of a known pending transaction to profit from the anticipated price movement.