arbitrage

arbitrage

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1

in the literature, arbitrage is generally divided into "type a" and "type b". there is no risk of losing in type a arbitrage, the chance of winning is one hundred percent. while there is no risk of losing in type b arbitrage, the chance of winning is below one hundred percent. in financial circles, type a is also referred to as "free lunch" and type b as "free lottery ticket".

2

the form of earnings resulting from a security's acquiring different values in different locations. for example, we used to play marbles when we were kids. while the white bone marble was 5 flat marbles in our street, it was 3 marbles two streets above. now if you buy 30 marbles and 10 white bones from the upper street and exchange them for 5 marbles in your own neighborhood, you will have 50 marbles. the profit you make becomes arbitrage.

3

ilhan cavcav used to be the king of it. he used to sell the artillery he bought from africa for $50,000 to the big three for millions of dollars.

4

since no market in the world works very effectively, there are undoubtedly many arbitrage opportunities for those who know how to see.

5

although mostly in foreign currency, it doesn't have to be like that, of course. arbitrage is to act as an intermediary for any highly liquid commodity, when there is a buyer and a seller who are unaware of each other (and there is a price difference that will make you profit). it is a low-risk trading action that eliminates price differences. if you think of the economy as an electronic circuit, it is kind of equalizing the voltage difference between two points by connecting a short circuit wire between those two points.

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