Arbitrage

Some may be familiar with the term arbitrage, but let me define it here:

Arbitrage is the practice of taking advantage of a state of imbalance between two (or possibly more) markets. Combinations of matching deals are struck to exploit the imbalance, the profit being the difference between the market prices.

So what does this mean in simple English? If you can find a situation where you can pay a smaller amount for a resource from one market and then turn around and sell that identical resource to another market for a larger guaranteed price then you are taking advantage of the imbalance between the two markets and realize a no risk profit.

Sound pretty cool right?

I mean, wouldn