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Glossary  -> Arbitrage

Arbitrage

Arbitrage is the simultaneous purchase of a security on one stock exchange and sale of the same security on another stock exchange, often in  a different country.  This is done to make a profit from the difference in prices between the two stock exchanges, due to different prices, and currency fluctuations.  The person doing the simultaneous purchase and sale is called an arbitrageur.

Revised: October 26, 2023

 

 

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