arbitrage has a more precise meaning than just "you can make money by buying here and then selling there" (otherwise any commerce could be called arbitrage). t

arbitrage has a more precise meaning than just "you can make money by buying here and then selling there" (otherwise any commerce could be called arbitrage). the defining characteristic of arbitrage is that it is risk-free. taking deposits and loaning out money is not risk-free (because someone might not pay you back in full), so it's not arbitrage. using dollars to buy yen cheaply and then selling it back for more dollars in the same transaction is an example of arbitrage.