Volatility arbitrage definition

These are trades that try to take advantage of price differences over time or in individual markets. Thanks to the electronization of trading, the prices are quickly balanced in the markets and arbitration is very difficult.

It thus has a positive effect on price equalization in individual markets. The greater the volatility, the wider the price range in which the exchange rate fluctuates.


Related words

Money Supply ・ Money Markets ・ Market Maker ・ Margin Call ・ Margin ・ Market Order ・ Monetary Reserve ・ Monetary Policy ・ Mini-Forex Account ・ Mine and Yours・ Major Pairs・ Mutual Fund・ Market Capitalization