#ArbitrageTradingStrategy Arbitrage refers to a trading strategy in which a trader benefits from buying and selling a security in two different markets to benefit from the price differences. Here’s an example to understand the concept better.

Suppose stock ABC is quoted on the BSE at Rs 10 per share and on the NSE at Rs 10.20. A trader notices this difference in prices and aims to capitalise on it. In order to enter into an arbitrage trade, the trader will buy the security on the BSE and sell it on the NSE.