What Is Arbitrage? (SIE and Series 7 Exam)

What Is Arbitrage? (SIE and Series 7 Exam)

Arbitrage means buying something at a lower price in one market and simultaneously selling it at a higher price in another — locking in a risk-free profit. It is a key concept on the SIE and Series 7 exams and often appears in questions about market efficiency and pricing. Pure arbitrage leaves no residual risk.

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