________ is the instantaneous purchase and sale of a currency in different markets for profit.

Question

Quizplus · Accepted Answer

Currency arbitrage is the practice of buying a currency in one market where the price is low and immediately selling it in another market where the price is high, making a profit from the difference in prices. This is a quick and short-term strategy commonly used in the foreign exchange market by traders seeking to profit from market inefficiencies. Currency hedging, on the other hand, is used to protect against potential losses in the value of one currency by taking a position in a different currency. Currency speculation involves taking a position in the market based on anticipated currency movements, while currency conversion refers to the process of exchanging one currency for another.

________ Is the Instantaneous Purchase and Sale of a Currency