Arbitrageur

Investor profiting from the price differences between the markets. To do it successfully, relatively large funds and the knowledge of markets are necessary. Market participant who makes riskless profit. They exploit the different pricing coming from market anomalies. There are two ways of making arbitrage profit: 1) when the same instrument is priced differently at two different stock exchanges: in this case buy where it is cheaper and sell where it is more expensive; 2) when the price of an instrument and the cost of its synthetic production are different: in this case buy it in the cheaper form, and sell it in the more expensive one. The activity of these investors ensures the disappearance of market anolamies from the prices, and that the market price of the financial instruments reflect the real, reasonable (theoretical) price.