to perform arbitrage, usually people monitor the list of sell and buy requests on the exchange. then comparing with other exchanges, if the difference is large and the number of orders can generate profits, it will be executed immediately. arbitrage for me the price reading speed and execution.
You can't expect if the tx from one to another exchange site will be going very smooth if there are huge traffic in the blockchain. Basically, it's an impossible thing to arbitrage the ethereum assets as the blockchain is very slow and there's possibility for the deposit to be blockchain.
You must know if the exchange site that didn't wanna see the arbitrage users to go in will always try to block it.
That means you are in a big risk when the exchange site was doing such action preventing the arbitrage traders to sold their coins on it. '
Arbitrage will very effective to be done by using the scalable chain.