Financial Education

Arbitrage

Riskless profit from price discrepancies

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Arbitrage

Riskless profit from price discrepancies

Definition

Arbitrage involves simultaneously buying and selling the same or equivalent assets in different markets to profit from price differences. True riskless arbitrage is rare in efficient markets, but statistical arbitrage and risk arbitrage (with some residual risk) are common trading strategies.

Related Topics

#trading #price discrepancy #riskless #statistical arbitrage

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Category: Trading

Trading concepts cover market mechanics, order types, liquidity, and execution strategies.

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