What is arbitrage trading?

Arbitrage is the simultaneous purchase and sale of an asset in different markets to exploit tiny differences in their prices. Arbitrage trades are most commonly made in stocks, commodities, and currencies, but can be accomplished in with any asset. Arbitrage takes advantage of the inevitable inefficiencies in markets.

What is arbitrage in finance?

In the world of finance, arbitrage is a commonly used strategy to capitalize on price differences. Traders and investors exploit these differences to generate risk-free profits while maintaining a neutral market position. Arbitrage strategies serve a crucial role in maintaining efficient markets.

What is arbitrage strategy?

Arbitrage strategy is a trading method that involves taking advantage of price differences in two or more markets to earn profit with minimal risk. What are the types of arbitrage strategies? The types of arbitrage strategies include spatial, statistical, temporal, and inter-exchange arbitrage.