# 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.