What are arbitrage opportunities?

Answer by  MTGrandma (405)

This is another way of saying "buy low, sell high." If you buy a house for $65,000 then resell the house for $100,000.00 that is an arbitrage opportunity. If you buy a pearl necklace at a yard sale for $5.00; sell it for $100.00 you have made a profit.

Answer by  Munawer (365)

Arbitrage opportunities are mainly utilized in the subject of finance. It is particularly used in stock markets where an investor/broker sells/buys a stock and then buys/sells the same stock, usually in quick succession, and takes advantage of the difference in pricing or price per share of the stock.