Introduction to Arbitrage - Free

Lesson 1/2 | Study Time: 5 Min

🧩 Topics Covered:




  • Definition: Arbitrage is the practice of taking advantage of price differences between two or more markets to earn a profit with minimal or no risk.




  • Basic Example: Buy a product on eBay for $30 and sell it on Amazon for $50.




  • Market Inefficiencies: Caused by delays in information, location, or supply/demand gaps.




  • Types of Arbitrage: Spatial, temporal, statistical, and more.




  • Key Requirements: Speed, accuracy, capital, and tools.





✅ Outcome:




You’ll understand what arbitrage is, why it works, and where it applies across industries.