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Arbitrage
Arbitrage is a practice of taking advantage of the moment, usually on different markets.
Aim is to buy securities at one market where securities are undervalued and sell them at another market where securities are overvalued. Using price differential between two or more markets can gain high profit in very short time.
Arbitrage as an investment strategy is recommended to experienced investors only.
| Related Terms: Index Arbitrage Reversal Arbitrage Statistical Arbitrage Wide Basis |