GENERAL KNOWLEDGE

Detailed explanation-1: -Arbitrage describes the act of buying a security in one market and simultaneously selling it in another market at a higher price, thereby enabling investors to profit from the temporary difference in cost per share.

Detailed explanation-2: -Arbitrage means taking advantage of price differences across markets to make a buck. If a currency, commodity or security-or even a rare pair of sneakers-is priced differently in two separate markets, traders buy the cheaper version and then sell it at the higher price to make money.

Detailed explanation-3: -Arbitrage occurs when an investor can make a profit from simultaneously buying and selling a commodity in two different markets. For example, gold may be traded on both New York and Tokyo stock exchanges.