Forex trading: What is currency arbitrage, and is it profitable?
Updated: 17 Jul 2022, 09:40 AM IST
TL;DR.Currency markets, just as financial markets, have some imperfections — the same currency pair can be sold at different prices at the same time. Some traders capitalise on these deviations to make money during a process called currency arbitrage. Read further to understand the concept in detail
A currency arbitrage is one of the foreign exchange strategies that allow a currency investor to make money from different rates offered by brokers in different currency markets for the same currency pair.