Arbitrageur

[munna99185]

A trader such as a bank or brokerage firm who profits from the differences in price when the same, or extremely similar, security, currency, or commodity is traded on two or more markets. The arbitrageur profits by simultaneously purchasing and selling these securities to take advantage of pricing differentials (spreads) created by market conditions. For example, one may buy a security at a low price, and, within a few seconds, re-sell it to a willing buyer at a higher price. Arbitrageurs can keep prices relatively stable as markets attempt to resist their attempts at price exploitation.

Sayed Farrukh Ahmed
Assistant Professor
Faculty of Business & Economics
Daffodil International University