This is the tenth article in the series "Popular Risk management". The aim of the series is to describe the main Risk management topics in a simple, but at the same time a clear and concise language.  
Written by Boris Agranovich

Original definition:

Arbitrage is simultaneous purchase and sale of the same commodity or stock in two different markets in order to profit from price discrepancies between these markets.

For example, selling the share of Shell for a higher price in Amste...


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