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market arbitrage

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Financial Dictionary

Market Arbitrage

Purchasing and selling the same security at the same time in different markets to take advantage of a price difference between the two separate markets.

Investopedia Commentary

An arbitrageur would short sell the higher priced stock and buy the lower priced one. The profit is the spread between the two assets.

Related Links

Trading the Odds with Arbitrage

See also: Arbitrage, Arbitrage Trading Program (ATP), Long, Short Sell

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