ArbitrageTradingMode is watching prices of the configured trading pairs across the available exchanges to find [arbitrage](https://www.investopedia.com/terms/a/arbitrage.asp) opportunities.<br><br>ArbitrageTradingMode is watching the price of the traded pairs accord every exchange and computes its average price. If the price of a pair is far enough from its average cross-exchange price, an arbitrage trade is initiated. <br><br>An arbitrage trade consists in **2 orders**: 1. A limit buy or sell at the current local exchange price 2. When this first order is filled: - A limit buy or a sell at the average price (average of prices on other exchanges) is created to benefit from the arbitrage opportunity - A stop loss on the opposite side is created to secure funds The first limit order is cancelled if the local exchange price reaches the other exchanges average price. **No funds are transferred** from one exchange to another, it all happens on the same exchange.<br><br>It is recommended to enable arbitrage trading on **few exchanges only** to benefit from **price lag**: simply register these exchanges in your ArbitrageTradingMode configuration. **Every exchange** in your OctoBot configuration will be used to compute the **average price** for each traded pair, therefore you can add **highly liquid exchanges** to be used as **price references only** and quickly spot arbitrage opportunities.<br><br>By default **every exchange** in your OctoBot configuration is used for arbitrage trading. It is recommended to **narrow this list down** in your ArbitrageTradingMode configuration and **only trade on the ones offering arbitrage opportunities and use the others as price indicators**.<br><br>Exchanges that are used for **price reference only require no api keys** as no trade is performed on these exchanges.<br><br><div class="text-center"> <img src="https://raw.githubusercontent.com/Drakkar-Software/OctoBot/assets/arbitrage.png" width="100%" height="100%"> </div><br><br>_This trading mode supports PNL history._