|
Arbitrage |
| The simultaneous buying and selling of like amounts of the same, or similar, investment for a profit. For example, purchasing gold in the Chicago exchange and instantly selling the same amount of gold in the London market for a gain. By taking advantage of momentary disparities in prices between markets, arbitrageurs help to make the markets trade more efficiently. Managing a portfolio to profit from identifying and exploiting arbitrage opportunities is a technique used by many hedge funds. |