Arbitrage as well as extraordinary demand play a very essential role when it comes to prices convergence and arbitrage efficiency among different exchanges. The arbitrageurs get the advantage of incongruities of the whole value of the goods at different exchanges, when they buy goods at a cheaper price at one exchange and sell them at a higher price at another exchange so that they can make the most of the rate disparity.

The cryptocurrency market where fees can differ drastically between exchanges depending on other factors such as liquidity, trading volumes and different regulatory areas, often has enough room for arbitrage to be exploited. In such a context, arbitrages make use of changing price rates and levelling them between 2 or more exchanges.

The price arbitrage activity happens when a price discrepancy occurs among exchanges. A trader who gains advantage at the difference by his/her buying the token at the exchange with a lower price and at the same time to sell it at the exchange with a higher price. Such significant attracting pressure on LTC trades on the upper levels and increases the trading stress for coins that are more expensive acts as a further mechanism of closing the gap between LTC's price with BTC, so that point of no more arbitrage could be reached.

This creates arbitrage sports with the competitors that do the same. Usually, costs gradually homogenize across the exchanges, that is, they become similar which again leads to consistency and stability of the crypto-market. Arbitrage serves as one the major ways of preventing price differentials to the extent of messing the market balance. Besides, it helps to equalize prices to the fundamental cost of across-the-board trading venues.

Lastly, on the foundation of this role in cryptocurrency price stability, especially price convergence across exchanges, arbitrage is an important platform for market balance, increased liquidity and fair prices, rewarding traders, investors, and the systems as whole.