21 October 2008
This can be explained by a small example. Instead of directly looking the exchange rate between INR and JPY, suppose going Via USD gets better realisation (hypothetically) such methods are called arbitrage benefit
22 October 2008
Arbitrage Benefit is the opportunity of making profit as a result of price differential of a commodity, security or currency or like item in two different markets at a given moment.
The same may further be understood in the secuties market which may be defined in the following manner: Profiting from differences in price of the same share traded on two or more stock exchanges. An arbitrageur makes money by buying in the lower market and immediately thereafter selling in the higher market, or vice versa, thereby making a profit.