Arbitrage is the practice of buying a commodity in one market and selling it in another market to profit from the difference in price. It involves taking advantage of price discrepancies between different markets or exchanges. It is not illegal but requires careful analysis and quick action to be profitable.

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Arbitrage Is

Question 70

Multiple Choice

Arbitrage is

A) profit made in the money market.
B) illegal.
C) a means of making round- trip profit.
D) the practice of seeking to profit by buying in one market and selling for a higher price in another related market.
E) rent seeking in a monopoly market.

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