Arbitrage is the process of buying and selling in one market in order to make a riskless profit.

Question

Quizplus · Accepted Answer

Arbitrage involves exploiting differences in prices between two markets to make a profit without taking on any risk. It involves buying an asset (or financial instrument) at a lower price in one market and immediately selling it at a higher price in another market. The difference in price is the profit made by the arbitrageur.

Arbitrage Is the Process of Buying and Selling in One