> For the complete documentation index, see [llms.txt](https://foundationblockchain.gitbook.io/light-bot-arbitrage-founding-rate/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://foundationblockchain.gitbook.io/light-bot-arbitrage-founding-rate/how-cryptocurrency-trading-arbitrage-opportunities-arise.md).

# How Cryptocurrency Trading Arbitrage Opportunities Arise

Real-time pricing at any cryptocurrency exchange is the price of the most bid-ask orders matched orders on that exchange. These bid-ask prices are different for each exchange due to differences in investor demand on these exchanges. These exchanges rely on centralized order books.

Automated market-making systems are different from decentralized [crypto exchanges](https://www.softwaretestinghelp.com/best-cryptocurrency-exchange/). Instead of centralized order books, the exchanges rely on a liquidity pool. Each pair has its liquidity pool.