currency arbitrage

Currency arbitrage involves taking advantage of price differences in exchange rates of the same currency across different markets or platforms. For example, if you can buy euros cheaply in one country or market and sell them at a higher price in another, you make a profit without exposing yourself to significant risk. It exploits small discrepancies in currency prices that may exist temporarily due to market inefficiencies. Traders engaged in arbitrage act quickly to capitalize on these differences before they disappear, helping to equalize currency prices across markets.