About this document
Understanding Locational Arbitrage by Abdallah Cl is a document available to read on EtoBox.
International arbitrage seeks to profit from temporary price discrepancies between financial markets. There are three main types: 1) Locational arbitrage exploits short-term differences in exchange rates for the same currency pair quoted in different locations. Traders buy the currency where it is cheaper and immediately sell it where it is more expensive. 2) Triangular arbitrage takes advantage of temporary divergences between direct and implied cross rates for three currencies. Profit is made by buying
- Author
- Abdallah Cl
- Language
- EN