What is the term for the practice of simultaneously purchasing and selling the same asset in different markets to try to make a profit from the tiny difference in the listed price?

As described by Investopedia.com: "Arbitrage trading is not only legal in the United States, but is encouraged, as it contributes to market efficiency. Furthermore, arbitrageurs also serve a useful purpose by acting as intermediaries, providing liquidity in different markets."

Asked by Tom Cohen · Last updated 5 years ago · 1.2K views