Arbitrage

Arbitrage is the act of buying and selling an asset or currency at the same time. Arbitrage is sometimes used in a very unpredictable market, by buying and selling the currency at the same time, traders can make realized gains by unloading the winning side and holding on to the losing side. When the losing side starts to reverse direction and turn into a profit it will then be harvested for profit. This strategy is mostly used in a sideways market especially in the forex market where currency prices move up and down at a regular basis.

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