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Arbitrage

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In economics and finance, arbitrage is the practice of taking advantage of a price difference between two or more markets. For example, an arbitrage opportunity is present when there is the opportunity to instantaneously buy something for a lower price on, say, eBay, then sell it for a higher price on Amazon.

Arbitrage has the effect of causing prices of the same or very similar assets in different markets to converge.

Source

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This entry includes content from the following Wikipedia article: Arbitrage