Register now or log in to join your professional community.
Arbitrage is the simultaneous purchase and sale of equivalent assets at prices which guarantee a fixed profit at the time of the transactions.
Hedging is the simultaneous purchase and sale of two assets in the expectation of a gain from different subsequent movements in the price of those assets. Usually the two assets are equivalent in all respects except maturity.
Arbitrage simply the price difference between different markets of same things, so people earn profit due to the non symmetric information of consumers. Hedging is the investment in different securities to offset the risk with zero correlation. Thanks
Do you need help in adding the right keywords to your CV? Let our CV writing experts help you.