InvestorsHub Logo
Boards
News
Market Data
Markets
Discover
Discover
Subscribe Login/Register
S&P 500
5,431.60
(
-0.04%
)
US TECH 100
19,168.00
(
0.52%
)
Dow Jones
38,589.16
(
-0.15%
)
Brent Oil
82.28
(
0.00%
)
Bitcoin
66,537.12
(
0.52%
)
Post# of 67758
Next 10
Reply Private New
Public Reply Private Reply New Post
Keep Last Read
Keep Next 10 Report Keyboard Shortcuts
Next 10 Prev Next

dustywest

Send PM Follow Ignore
Followers 6
Posts 374
Boards Moderated 0
Alias Born 07/14/2013

dustywest

Re: None

Wednesday, 11/05/2014 11:37:01 AM

Wednesday, November 05, 2014 11:37:01 AM

Post# of 67758
“free lunch”—trading strategy..can profit without cost/risk.

In finance theory, an arbitrage is a “free lunch”—a trading strategy that can profit without cost or risk. Suppose a futures contract trades on two different exchanges. If, at one point in time, the contract is bid at USD 45.02 on one exchange and offered at USD 45.00 on the other, a trader could purchase the contract at one price, sell it at the other, and make a risk-free profit of a USD 0.02.

http://riskencyclopedia.com/articles/arbitrage/
Public Reply Private Reply New Post
Keep Last Read
Keep Last Read Next 10 Report Keyboard Shortcuts
Next 10 Prev Next

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.

Sign Up