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What is ‘Arbitrage and the Currency Market’?
Currency Arbitrage refers to a Foreign Exchange strategy whereby a currency trader buys and sells currency pairs from different brokers at different prices and takes advantage of this disparity. The institutions where such dealings are maintained, calculated and dealt with are known as Arbitrage and the Currency Market.
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How Much Risk Goes in Such Trading?
Well, to start with, it is an absolute risk-free trading that permits the retail FX traders to earn profit with no open currency exposure. All you do is take advantage of the inefficiency of currency pricing in the Foreign Exchange market.
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