How Do Arbitrageurs Exploit Price Discrepancies between OTC and Exchange Markets?

Arbitrageurs profit by simultaneously buying an asset in the market where it is priced lower (e.g. a dark pool or OTC) and selling it in the market where it is priced higher (e.g. a public exchange). This low-risk strategy exploits the temporary inefficiency created by the price discrepancy.

Their actions, by buying low and selling high, ultimately help to bring the prices in the two markets back into alignment.