Arbitrage vs Fragmented Liquidity

Quick comparison to help you distinguish these two crypto terms.

Arbitrage
intermediate
market_structure

Arbitrage is the practice of simultaneously buying an asset on one market and selling it on another to profit from a price difference between the two venues.

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Fragmented Liquidity
intermediate
market_structure

Fragmented liquidity describes a market condition where trading volume and order book depth are spread across multiple separate exchanges rather than concentrated in one unified venue.

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