GO
Loading...

Arbitraging Futures Contracts: CNBC Explains

Arbitrage is a way to make risk-free profits by taking advantage of a market’s price differences. In the right environment, it’s easy to see how you can make risk-free profits using arbitrage. Salman Khan of the Khan Academy shows two examples of using arbitrage in futures contracts, and he identifies important information you should know if you try this type of transaction.

From the first video, you’ll understand:

  • How to combine trades to take advantage of arbitrage opportunities
  • The information you'll need to understand if arbitrage is possible


From the second video, you'll understand:

  • How arbitrage opportunities change when market conditions change
  • How the market can set lower bounds on futures contract prices

Contact CNBC Explains

  • CNBC NEWSLETTERS

    Get the best of CNBC in your inbox

    Please choose a subscription

    Please enter a valid email address
    To learn more about how we use your information,
    please read our Privacy Policy.

Latest Special Reports

  • Trading Nation

    Trader Nation is not simply about finding that next trade -- it is a place where traders trade better together.

  • Inside the market's biggest sectors with a look at the trends, companies and trades netting profits for investors.

  • CNBC 'Explains' the complicated economics of our world—from stocks and balance sheets, to trade and public policy.