Arbitrage is the purchase and sale of an asset at the same time in order to profit from a difference in the price.
 | | Arbitrage | | Arbitrage is the simultaneous purchase and sale of an asset to profit from an imbalance in the price. It is a trade that profits by exploiting the price differences of identical or similar financial instruments on different markets or in different forms. Arbitrage exists as a result of market inefficiencies and would therefore not exist if all markets were perfectly efficient. | | Read More » | | Inefficient Market | | An inefficient market, according to efficient market theory, is one in which an assets' market price does not always accurately reflect its true value. | | Read More » | | | Positive Carry | | Positive carry is a strategy of holding two offsetting positions and profiting from a price difference. | | Read More » | | | Tax Arbitrage | | Tax arbitrage is the practice of profiting from differences that arise from the ways transactions are treated for tax purposes. | | Read More » | | | | | | CONNECT WITH INVESTOPEDIA | | | | | | | |
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