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 ?
The private sector has been a victim of government's borrowing from the banking system providing easy and risk free profits to the banks depriving the private sector to use the funds for growth of the economy.
Banks have been investing in government papers on mass scale and earned risk free profits, however, their approach of banking is depressive for economic growth.

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