Arbitrage

: This activity actually helps the market by narrowing price gaps, eventually driving prices toward efficiency. Common Strategies

: Buying a convertible security (like a bond) and shorting the underlying stock to profit from mispriced options. arbitrage

: They buy on the cheaper exchange and simultaneously sell on the more expensive one. : This activity actually helps the market by

Arbitrageurs exploit market inefficiencies—temporary glitches where supply and demand levels differ across exchanges. arbitrage

: A trader (often a computer) finds a price difference for the same asset on two different exchanges.