Arbitrage

Profiting from price differences of the same asset across different markets.

Arbitrage is the simultaneous purchase and sale of the same asset in different markets to profit from a price discrepancy. In theory, arbitrage opportunities are risk-free and short-lived because market participants quickly eliminate them. Common in forex, equities, and crypto markets.

The hedge fund earned a quick arbitrage profit by buying the stock cheaply in Tokyo and selling it higher in New York.