arbitralisatie

Arbitralisatie is a financial concept referring to the simultaneous purchase and sale of an asset in different markets or in derivative forms to profit from tiny differences in the asset's listed price. These price differences may occur due to an imbalance in supply and demand, or because of differences in the exchanges themselves. The goal of arbitralisatie is to exploit these temporary price discrepancies to make a risk-free profit. Arbitrageurs, as these traders are known, aim to capture the difference between the purchase price and the selling price. For example, if a stock is trading on two different exchanges at slightly different prices, an arbitrageur could simultaneously buy the stock on the exchange where it is cheaper and sell it on the exchange where it is more expensive. The profit is the difference in price, minus any transaction costs. In practice, these price differences are often very small and require sophisticated trading systems to exploit effectively. The existence of arbitrage opportunities is generally short-lived, as the actions of arbitrageurs tend to drive the prices back into alignment. This process helps to ensure that prices are consistent across different markets and instruments. Arbitralisatie can also occur with other financial instruments, such as bonds, currencies, and commodities.