It is an investment strategy that attempts to profit from inefficiencies in price by making transactions that offset each other. Market arbitrage is the process of taking advantage of differences in prices for the same commodity in different markets. It allows people who spot an opening to make a quick profit. However, the costs of buying and selling commodities can limit the … [Read more...]
The concept of Arbitrage
Arbitrage is the process of making profit from the price difference between two or more markets and a person who engages in arbitrage is called an arbitrageur. For example, an investor is trading simultaneously in NSE and BSE, for particular stock the price in BSE is lower than the trading price in NSE. He can then make profit from this price difference by opting for … [Read more...]