So what does arbitrage mean? The definition of Arbitrage is an act which takes advantage of price discrepencies in two or more different markets to trade between those markets as close to simultaneously as possible in order to make a guaranteed profit. That is, buying low and selling high in two different locations at the same time!
Different to the traditional and well known idea of 'buy low, sell high', which is all about a difference in time (ie: get in while the price is low, and then wait for the price to go up), Arbitrage is all about buying low and selling high at the same time.
But of course, you can't exactly go in to a store and buy a product for $1, and sell it back to them for $1.50. You need to have two
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