Before we delve into the nuances of Binance to Huobi arbitrage, let’s just clear the fundamental grounds of what arbitrage is and how do they function, followed by the former concern.
Defining Cryptocurrency arbitrage
The concept of arbitrage already existed in bond, foreign, stock and exchange markets for years. But it has mostly been out of reach for many retail traders since there was a lack of qualitative system which could pick out the price differences, furthering the execution of trades cross-platform. So, Arbitrage is basically the simultaneous buying-selling of assets from various markets to help the buyer garner profit from the price differences between the concerned markets.