Smart arbitrage on Binance" typically refers to using automated, fast, and optimized strategies to profit from temporary price differences of cryptocurrencies, either on Binance or between Binance and other exchanges.

​Since price discrepancies are quickly exploited in efficient markets like Binance, "smart" arbitrage often requires automation and speed.

​Here's a breakdown of common types of arbitrage strategies and how they relate to "smart" trading on Binance:

​1. Cross-Exchange Arbitrage (Pure Arbitrage)

​This is the most traditional form:

​Concept: Buying an asset (e.g., BTC) on one exchange where the price is lower and simultaneously selling it on another exchange (like Binance) where the price is higher.

​"Smart" execution: Requires you to have funds pre-positioned on both exchanges and use trading bots to execute the buy and sell simultaneously to beat other traders. Relying on slow blockchain transfers (deposits/withdrawals) is usually too slow and risky for this to be profitable.