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Arbitrage is the route in the foreign exchange market to gain profit. It is nothing but using the variation in the value of particular currency in various world markets. In simpler terms it is buying at lessor cost and selling at a higher cost. Such opportunity is available in overseas market. In countries like Singapore the currencies of various countries are always quoted at higher level when compared to their cost in the domestic market of they said currency. The banks and corporates take advantage of the price difference and buy hem in the domestic market and sell them in the overseas market to make profit.

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