What is arbitrage trading? This type of trading capitalizes on imbalances in prices between markets. Simply put, this is when an asset is simultaneously bought and sold in two markets — often because they are being sold at slightly different prices. As an example, shares in a technology company might be on sale for $35 on the New York Stock Exchange, but available for $35.10 in London. Sure, the difference is small — but speedily bulk buying the shares at the lower price and selling them for a higher price can result in a tidy profit for an eagle-eyed trader. This concept captures the very essence of arbitrage, and ... (full story)