FxPro Help Centre - Glossary

Arbitrage (undefined)

Arbitrage is the concurrent purchase and sale of asset in order to profit from the price difference (i.e. selling an asset in one market to simultaneously buy it in another market at a cheaper price). Arbitrage is the result of price inefficiencies and is extremely difficult for individual traders to exploit. Thus, the capitalization of these price inefficiencies is usually achieved by large financial institutions that employ advanced algorithmic trading programs.