Arbitrage
Definition of Arbitrage
Arbitrage is the process of buying a security or asset from one market and then selling it in another market and making a profit with a small price difference. Generally, it is seen in stock markets people buy a stock from one exchange at a given price and then sell it to another at a higher price.
For example, a person has bought a share for Rs.100 from NSE and then sold it on BSE for 102. The difference of 2 rupees is the profit of the arbitrator.
