arbitrage opportunities that arise in foreign exchange market are usually ?
Answers
Answer:
In foreign exchange arbitrage, foreign currency is bought where its price is low and sold where the price is high. Another form of arbitrage is interest arbitrage. Interest arbitrage is the transfer of liquid funds from one financial currency to be received upon maturity of the investment.
Explanation:
The arbitrage opportunities exist due to the inefficiencies of the market. ... While dealing in the arbitrage trade, an individual can make profits only out of price differences of similar or identical financial instruments traded on different exchange markets.Forex arbitrage is the strategy of exploiting price disparity in the forex markets. It may be effected in various ways but however it is carried out, the arbitrage seeks to buy currency prices and sell currency prices that are currently divergent but extremely likely to rapidly converge.
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