> For the complete documentation index, see [llms.txt](https://eigenphi-1.gitbook.io/classroom/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://eigenphi-1.gitbook.io/classroom/mev-types/arbitrage.md). # Arbitrage [According to Wikipedia](https://en.wikipedia.org/wiki/Arbitrage): > In economics and finance, arbitrage is the practice of taking advantage of a difference in prices in two or more markets, striking a combination of matching deals to capitalize on the difference, the profit being the difference between the market prices at which the unit is traded. When used by academics, an arbitrage is a transaction that involves no negative cash flow at any probabilistic or temporal state and a positive cash flow in at least one state; in simple terms, it is the possibility of a risk-free profit after transaction costs. For example, an arbitrage opportunity is present when there is the possibility to instantaneously buy something for a low price and sell it for a higher price. Like trading stocks, “buy low and sell high” is the essence of arbitrage. The variation of tokens, EOAs, vaults, and liquidity pools derives arbitrages using assorted tokens and trading venues. Commonly, arbitrages that don't mess with the trading orders bridge the pricing information in the DeFi market, making it more efficient. Let’s dive into arbitrages using different numbers of tokens and token venues and see how the arbitrage searchers exploit the essence in their practices. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://eigenphi-1.gitbook.io/classroom/mev-types/arbitrage.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.