New Enroll in RBI Grade B New Batch - Starts on May 21

    Question

    Simultaneous buy and sale of an assets to book profit

    is called as -
    A Arbitrage Correct Answer Incorrect Answer
    B Insider trading Correct Answer Incorrect Answer
    C Option trading Correct Answer Incorrect Answer
    D Margin profit Correct Answer Incorrect Answer
    E Leverage Correct Answer Incorrect Answer

    Solution

    Arbitrage is the simultaneous purchase and sale of an asset to profit from a difference in the price. It is a trade that profits by exploiting the price differences of identical or similar financial instruments on different markets or in different forms. Arbitrage exists as a result of market inefficiencies.

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