Forex glossary / Arbitrage

Japanese Arbitrage

Arbitrage: One of trading style. Making use of time-gap or miss-pricing in the market, it is much profitable and less risky to buy the cheaper and sell the higher than expected at the same time, and to close the position after the abnormal condition is regularized. In case of forex market, there often occur some gapping of price movement between major currencies and minor currencies. An arbitrage trading is always aiming to take the chance.

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