What is an arbitrage strategy?

Arbitrage is a strategy which traders and fund managers use to take advantage of price imbalances in different markets. In this article we discuss what this strategy involves and different types of arbitrage strategies. What is the definition of arbitrage? The simple explanation of arbitrage is buying an asset where the price is lower and selling the asset where the price is higher in a different market. Traders who want to exploit price discrepancies between two markets can use this …

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