How Do Cross-Exchange Arbitrageurs Profit from Price Isolation?

Cross-exchange arbitrageurs profit by identifying a significant price difference (isolation) for the same asset between two or more exchanges. They simultaneously buy the asset on the exchange where it is undervalued and sell it on the exchange where it is overvalued.

This nearly risk-free transaction is repeated until the price difference is eliminated. Their actions serve the crucial market function of ensuring price consistency across different venues.