This is the ability of an investor to simultaneously buy and sell identical assets in two different markets to take advantage of varying prices. The investor will profit when the asset sells for a higher price in one market than it does in another market. This kind of trade does not have great long-term implications as prices stabilize quickly.
Arbitrage
This is the ability of an investor to simultaneously buy and sell identical assets in two different markets to take advantage of varying prices. The investor will profit when the asset sells for a higher price in one market than it does in another market. This kind of trade does not have great long-term implications as prices stabilize quickly.
