Arbitrage
The business of taking advantage of difference in price of security traded on two or more stock exchanges, by buying in one & selling in the other [or vice versas]. Quite simply it means you try to buy something cheap in one place, to make a profit selling it somewhere else.Given the speed at which the financial markets now operate, in practice the simultaneous purchase of foreign exchange, securities, commodities or any other financial instrument in one market & the sale in another at a higher price. |
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