arbitrage
Arbitrage is the practice of taking advantage of price differences for the same asset in different markets. For example, if a stock is cheaper on one exchange than another, a trader can buy it at the lower price and simultaneously sell it at the higher price, locking in a profit. This process helps to ensure that prices remain consistent across markets. Arbitrage opportunities typically exist for short periods, as they are quickly identified and exploited by traders, eventually bringing prices back into alignment.
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Arbitrage is the practice of taking advantage of price differences for the same asset in different markets. For example, if a stock is priced lower on one exchange than another, an investor can buy it at the lower price and simultaneously sell it at the higher price. This allows them to profit from the price discrepancy, without taking on significant risk. Essentially, arbitrage relies on the principle of buying low and selling high, capitalizing on inefficiencies in market pricing to achieve a guaranteed profit.