# 5.5. Stage 1: Arbitrage Pairs Trading Stage 1 incorporates the two most important learnings from the beta phase: the importance of low latency for fast order execution, and the importance of liquidity on the various exchange accounts. Arbitrage pairs trading works best, when the accounts of the according currency pair already have a sufficiently high balance, so that no intermediate currency conversion are necessary. In this phase, investors profit from simple arbitrage between the same instrument on two different exchanges, by buying low and selling high at the same time. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.futuregold.us/ai-arbitrage-trade-system/5.-technical-details/5.5.-stage-1-arbitrage-pairs-trading.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.