Arbitrage Definition
Arbitrage is the simultaneous purchase and sale of an asset in different markets to profit from a temporary difference in its price, representing a risk-free pr
Arbitrage is the simultaneous purchase and sale of an asset in different markets to profit from a temporary difference in its price, representing a risk-free profit opportunity that exploits market inefficiencies. This strategy is crucial for maintaining price equilibrium across global financial markets, particularly in the highly interconnected foreign exchange (FX) and derivatives trading sectors.