Arbitrage Network

Definition ∞ An arbitrage network finds and completes concurrent transactions across distinct markets to gain from price variations. These systems use automated programs to spot momentary price differences for an asset on various trading platforms or pairs. By quickly acquiring an asset where its cost is lower and selling it where its cost is higher, such a network capitalizes on market inefficiencies. This operation aids market efficiency by helping synchronize asset values across separate venues.
Context ∞ In cryptocurrency, arbitrage networks function constantly across numerous decentralized and centralized exchanges. Their operations are often mentioned in reports concerning market fluidity, price steadiness, and competition among trading platforms. Observing their activity can provide understanding into real-time market movements and connectivity.