Arbitrage - A new Trend in Stock Trading |
| Date Added: August 16, 2010 06:52:06 AM |
| Author: IndianMoney.com |
| Category: Business and Economy: Trade |
| Arbitrage is the process where there is simultaneous purchase and sale of an asset in order to profit from a difference in the price of the similar financial instruments, on different markets or in different forms. A person who engages in this type of trading is called an arbitrageur. The term is applied to trading in financial instruments, such as bonds, stocks, derivatives, commodities and also currencies. Just an act of buying a product in one market and selling it in another for a higher price at some later time is not arbitrage. Arbitrage is when the transactions occur simultaneously to avoid exposure to market risk, or the risk assumed that prices may change in one market before both transactions are complete. In practical terms, this is only possible with securities and financial products which can be traded electronically. Read More..... http://www.indianmoney.com/article-display.php?cat_id=1&sub_id=12&aid=856&acat=&ahead=Arbitrage%20-%20A%20new%20Trend%20in%20Stock%20Trading....!!! |
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