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dustywest

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dustywest

Re: None

Friday, 11/07/2014 7:36:22 AM

Friday, November 07, 2014 7:36:22 AM

Post# of 67758
Information On Arbitrage ... MUST READ! (Re-post)

Information On Arbitrage ... MUST READ!

In finance theory, an arbitrage is a “free lunch”—a trading strategy

http://riskencyclopedia.com/articles/arbitrage/

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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/
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