East/West refers to geographic arbitrage opportunities and price relationships between Eastern and Western markets, particularly in global commodity and energy trading. These opportunities arise from regional supply-demand imbalances, transportation constraints, time zone differences, and infrastructure limitations that create pricing disparities between markets.

East/West trading strategies require understanding regional market fundamentals, transportation costs, storage capabilities, and regulatory differences. Time zone differences allow traders to capitalize on overnight price movements and information flow between markets. Infrastructure development and political relationships significantly influence East/West trading opportunities.

Real-world example: LNG traders exploit East/West arbitrage by shipping U.S. natural gas to Asian markets when Asian prices exceed U.S. prices plus shipping costs, profiting from regional supply-demand imbalances.