Arbitrage
The simultaneous purchase and sale of similar commodities in different markets to take advantage of price discrepancy.
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Arbitrage involves buying an asset in one market where the price is low, and at the same time selling the same asset in another market where the price is higher. The arbitrageur aims to take advantage of price discrepancies between the two markets with the view of profiting from this so-called risk-free series of transactions.
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