The simultaneous buying and selling of a foreign currency in two or more markets in order to take advantage of price differences:

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Arbitrage is the practice of buying and selling a foreign currency in different markets simultaneously to make a profit from the difference in its price. This is typically done by taking advantage of inefficiencies in the market, such as pricing discrepancies or time lags between different exchanges. Forex options, futures contracts, and forward contracts are all different types of financial instruments used in foreign exchange trading, but they are not directly related to the practice of arbitrage.

The Simultaneous Buying and Selling of a Foreign Currency in Two