Arbitrage

What is Arbitrage?

Arbitrage meaning A strategy involving the simultaneous purchase and sale of identical or equivalent commodity futures contracts or other instruments across two or more markets in order to benefit from a discrepancy in their price relationship. In a theoreticalefficient market, there is a lack of opportunity for profitable arbitrage. See Spread.

 

reference: U.S. COMMODITY FUTURES TRADING COMMISSION – CFTC Glossary

Tags: