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Arbitrage can be described as the process of purchasing and selling an asset simultaneously to profit from a difference in price.It is a form of trade in that buyers, and sellers get profits by taking benefits from the price difference between similar financial instruments in different markets. Persons who engage in arbitrage tagged as arbitrageurs.These people are connected to bank or brokerage firm, and arbitrage term is mostly applied trading in financial instruments like bonds, stocks, derivatives, commodities and currencies.
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