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Old 10-10-2006, 08:42 AM   #1

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What Is Arbitrage?

I often hear of the term arbitrage used with hedge funds and investment banks. Can anyone explain to me what exactly arbitrage means? Thanks
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Old 10-10-2006, 08:46 AM   #2

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Re: What Is Arbitrage?

Arbitrage is the simultaneous buying or selling of a contract in different markets to profit from discrepancies in prices between those markets.
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Old 10-11-2006, 02:47 AM   #3

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Re: What Is Arbitrage?

What are the important factors to be kept in mind when one involves in Arbitrage? As a beginner we have to follow the guidelines set by experts. Thanks in advance for you help.
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