Riskless arbitrage

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Riskless arbitrage

The simultaneous purchase and sale of the same asset to yield a profit.

Riskless Arbitrage

The act of buying an asset and immediately selling the same asset for a higher price. For example, one may execute two orders at once, one to buy a security at $10 and one to sell the same security at $12. The short time frame involved means that riskless arbitrage occurs without investment; there is no rate of return or anything like it because the asset is immediately sold. One simply makes a profit on the deal.
References in periodicals archive ?
Bankers showed their commitment to continue to fund the government which is still the best risk free profit making investment.
This policy change will not be pre-announced since the SNB does not want to give a risk free profit to the world's currency speculators.
Morgan provided Barrick with derivative contracts that virtually guaranteed it a risk free profit.
They are also putting up pounds 100 in complimentary bets to give our guests the chance to make a risk free profit on the day.

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