Arbitrage

Arbitrage

The concept of arbitrage carries a significant degree of importance in the field of economics and finance. According to the theory of finance and economics, arbitrage is the method of fetching the benefit of a price derivative or a price differential existing in a number of markets. In case of arbitrage, a collection or group of corresponding transactions is chanced upon capitalizing on the disequilibrium and profit arises from the variation in market prices. According to the academicians, an arbitrage refers to a deal where there is no involvement of a negative cash flow whether in a temporal state or in ...