In foreign exchange trading,arbitrage has ______ risk and speculation has ________ risk.

Question

Quizplus · Accepted Answer

Arbitrage involves the simultaneous buying and selling of currency to take advantage of price differences in different markets. This activity typically involves low or zero risk since profits are locked in almost immediately. 
On the other hand, speculation involves taking risks with the hope of making a profit from price movements in the foreign exchange market. Speculation comes with higher risk and potential for both gains and losses. Therefore, option D is not correct as speculation involves positive risk, while option A is not correct because even though arbitrage involves low risk, it is not zero risk.

In Foreign Exchange Trading,arbitrage Has ______ Risk and Speculation Has