Arbitrage Explained | International Economics | Ecoholics

Arbitrage means the simultaneous buying and selling of a foreign currency in two markets in order to profit from the exchange rate difference between the markets.
Arbitrageurs enter into arbitrage, that is, to purchase of an asset in a low price market and its riskless sale in a higher price market. This process leads to equalisation of prices of an asset in all segments of the market.
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