Market Arbitrage

What Does Market Arbitrage Mean?
Purchasing and selling the same security at the same time in different markets to take advantage of a price difference between the two separate markets.

Investopedia explains Market Arbitrage
An arbitrageur would short sell the higher priced stock and buy the lower priced one. The profit is the spread between the two assets.

Filed Under: Active Trading

Related Terms

Arbitrage
Arbitrage Trading Program - ATP
Arbitrageur
Long
Outward Arbitrage
Rational Pricing
Short Sell
Triangular Arbitrage
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