Arbitrage refers to the process of instantly trading one or more pairs of currencies or odds for a nigh risk-free profit. Usually, this involves two exchanges (this is then called a two-legged arbitrage); although more are, of course, possible. There are several steps when executing an arbitrage: Find a suitable opportunity Execute trades Rebalance accounts Step 1: Find a suitable opportunity This step is relatively easy. Simply check the order books of as many exchanges as you like, compare bids…