Arbitrage results in a riskless profit since a trader purchases a currency at a low price and simultaneously resells it at a higher price.

Question

Quizplus · Accepted Answer

Arbitrage is a trading strategy that takes advantage of price discrepancies in different markets or at different times in the same market to make a riskless profit. By buying a currency at a low price and selling it at a higher price at the same time, traders can realize a profit without exposing themselves to any market risk.

Arbitrage Results in a Riskless Profit Since a Trader Purchases