Trading Strategies

Arbitrage

Definition

What is Arbitrage?

Seeking to profit from price differences for the same or closely related assets while limiting directional risk.

Example in practice

A trader buys an ETF below NAV and sells the underlying basket.

Keep learning

The tendency of assets with strong recent performance to continue outperforming for a period.

A persistent direction in price or market movement.

A pattern of generally rising prices, often marked by higher highs and higher lows.

The evaluation of economic, industry, company, and financial information to estimate an investment's value.

Think you know your investing terms?

Put your knowledge to the test with a quick quiz.