Arbitrage basics | Finance & Capital Markets | Khan Academy

Arbitrage Basics. Created by Sal Khan.

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Finance and capital markets on Khan Academy: Options allow investors and speculators to hedge downside (or upside). It allows them to trade on a belief that prices will change a lot--just not clear about direction. It allows them to benefit in any market (with leverage) if they speculate correctly. This tutorial walks through option basics and even goes into some fairly sophisticated option mechanics.

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[ehmt-]

Thank you! I need things explained to me like a 3 yr old and you delivered. haha. Thanks again

[Malconomics]

This works perfectly as long as the fees and charges don't eat up your profit.

[RealStuntPanda]

Perfect, simple explanation of arbitrage and explains why Luna and UST tanked. People paid 90 cents for UST, traded it for $1 of Luna but by the time they can sell that Luna it was only worth 80 cents; thus they didn't arbitrage, they lost-itraged.

[ChessNetwork]

Risk free assuming you don't wreak your bike while traveling. :)

[QuantumPeter]

Dude, this is like two touching bodies with different temperatures.The cold becomes hotter, and the hot becomes colder until they reach an equilibrium!!!

[sumeetpandey]

This can also be a case for two different economies involved in trade.

[jeremychia]

i hope you keep doing this, if this works for me..im sure it works for most of the people out there. Well done.

[betinamountou]

Thanks for your help because I now have an idea of what arbitrage is all about...

[grpere]

Khan Academy makes everything so much clearer compared to any textbook.

[loonicstradingfrancoisabley]

Khan revealed the secret of financial markets! It’s the fundamental reason of why trading exist!

[ceciliandolo]

We can also say that Arbitrage is capitalization on discrepancies of the quoted prices

[KellyPosey]

thanks for this explanation! It's clear to see now one of the ways which the current system allows for manipulation for profit

[marissacecotpetersen]

Thank you for the upload. Excellently put and easy to understand :)

[Metrothunder]

Great explanation. Need that for my 7 exam.

[nassisclasses]

Thank u...sir...clear understanding😊😊👍

[linchianne]

oh Khan, here I am watching your stuff four years after graduating high school ;P

[cretiveuniverce]

Excellent tutorial explanation very good exceptional thanks

[sitizain]

THANK YOU FOR THE WONDERFUL EXPLAINATION

[soulfulwarrior]

Thanks, great, easily understandable explanation.

[thyraxarisosfp]

thank you. Glad I found this channel!!