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