The term “Arbitrage” refers to the process of buying and selling the same security but on different exchanges and at different price points.

Let’s say that a specific stock trades at $90 on one exchange side but on other side it trades at $91. So if you buy shares of that stock on the first side for $90 and sell these shares of that stock on the second side for $91 then it means that you are making some good profits. And thats what Arbitrage means.

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