Arbitrage

Profiting from price differences across different markets.

Detailed Definition

Arbitrage is the simultaneous purchase and sale of an asset in different markets to profit from tiny differences in the asset's listed price. It exploits short-lived variations in the price of identical or similar financial instruments.

Related in General Trading

Market Maker

An entity providing liquidity by offering both buy and sell quotes.

Dividend

A distribution of corporate profits to shareholders.

Moving Average (MA)

An indicator showing the average price over a period.