Tag Archives: Arbitrage Trading

The inefficiencies in the market leads to arbitrage. Inefficiencies could be undervaluation or overvaluation of an asset, owing to a variety of reasons including cost of transactions or human preferences or lack of adequate information. If the market were efficient, there would be no scope for arbitrage. There are different types of arbitrage, though. Based on the risk [...]

Arbitrage has been in practice since ancient times. Arbitrage is a speculative strategy, where someone attempts to profit from price differences of the same instrument either in the same market or in different markets. It involves buying and selling an asset at two different prices in order to profit from the difference. For example you [...]