Arbitrage

Profiting from the same thing trading at two prices, with no risk in theory. Pure arbitrage is nearly extinct; what practitioners call "arb" is usually a bet that two prices will converge — which is a risk, not an arbitrage.

Where Arbitrage is explained in depth

The definition above is the short version. These pages put it to work, in the order they use it most:

Calculators that compute it

The whole glossary

Information and education only. Every page, figure and calculator on this site exists to explain how financial instruments work. Nothing here is investment, tax or legal advice, a recommendation, or a valuation you can rely on. Full disclaimer