arbitrage
Definition
Profiting from differences in prices or yields in different markets. 'Arbitrageurs' buy a commodity, currency, security or any other financial instrument in one place and immediately sell it at a higher price to a ready buyer at another place—completing both ends of the transaction usually within a few seconds. Arbitrage is a sophisticated form of non-speculative, risk-free betting because it involves dealings where returns and prices are definite, fixed, and known. See also speculation.
arbitrage is in the Commodities & Precious Metals Trading, Currency Trading and Securities & Futures Trading subjects.
arbitrage appears in the definitions of the following terms: arbitrageur, defensive investment strategy, covered arbitrage, cross-market, arbitrage pricing theory (APT), speculation and balanced investment strategy
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