What is Arbitrage?
Arbitrage refers to the practice of taking advantage of price differences between two or more markets. In the context of social media and online marketing, arbitrage often involves using automated tools to buy and sell traffic, followers, or other online assets at a low price and then reselling them at a higher price.
- Risks of arbitrage
- Consequences of getting caught
Why is Arbitrage Penalized?
Arbitrage is often penalized because it can be used to manipulate online markets and deceive users. By artificially inflating prices or engagement metrics, arbitrageurs can create an unfair advantage over legitimate market participants.