What is arbitrage trading?

Arbitrage is trading that exploits the tiny differences in price between identical or similar assets in two or more markets. The arbitrage trader buys the asset in one market and sells it in the other market at the same time to pocket the difference between the two prices.

What is pure arbitrage?

Pure arbitrage refers to the investment strategy above, in which an investor simultaneously buys and sells a security in different markets to take advantage of differences in price. As such, the terms “arbitrage” and “pure arbitrage” are often used interchangeably. Many investments can be bought and sold in several markets.

Are arbitrageurs a good investment?

Arbitrageurs are typically very experienced investors since arbitrage opportunities are difficult to find and require relatively fast trading. They also need to be detail-oriented and comfortable with risk. This is because most arbitrage plays involve a significant amount of risk. They are also bets with regards to the future direction of markets.

What is arbitrage e-book?

Access your free e-book today. What Is Arbitrage? Arbitrage is an investment strategy in which an investor simultaneously buys and sells an asset in different markets to take advantage of a price difference and generate a profit.