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đŸȘARBITRAGE mini-series: What is Arbitrage?

Unlock the secrets of Arbitrage: Turning price gaps into profit!

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MoneyMoves
January 20, 2025

In this mini-series, we’re tacking all things arbitrage! By the end of this week, you’ll know exactly how you can take advantage of arbitrage to build your wealth in 2025. Ready to learn? Let’s go!

Episode1: What is Arbitrage?

Arbitrage is when investors take advantage of a product that is trading at different prices in different markets. Let’s look at an example:

Packet of NikNaks in SA = R15

Packet of NikNaks in US = $1 = R18

How to arb? Buy cheap, sell expensive. Easy as that. In this example:

Buy in SA @R15 (the cheaper market) and sell in the US @R18 (more expensive market) and make a profit of R3 per packet of chips.

Real World Examples

  • Sports or entertainment tickets: A BeyoncĂ© concert sells out quickly, and tickets purchased early are resold for a higher price.

  • Online Pokemon cards: A rare holographic Charizard card is listed for $200 on Facebook Marketplace. The same card sells for $300 on eBay due to higher collector demand or international exposure.

  • Golf equipment: You find a high-end golf club set being sold for $300 on because the seller is unaware of its value. Similar sets are selling for $600 on specialized 2nd hand websites.

But we don’t arb with BeyoncĂ© tickets or Pokemon cards, do we? 😏😉. In tomorrow’s episode, we will reveal exactly how its done.

Want to Arb?

Want to find out more? Let’s do it! Reach out via this link:

calendly.com/moneymoves_za/moneymoves-chats?back=1&month=2024-10

Disclaimer: This is not financial advice.

Who Are We?😎

The Knowledge Chest

Paul holds an Honours degree in Financial Analysis from Stellenbosch University. With a career spanning investing, accounting, and education, Paul is committed to becoming the best financial planner in South Africa. Despite his many accolades, Paul insists that his greatest achievement is that he is dating a yoga teacher.

The Anchor

Ingrid holds a BA Honours in Journalism from Stellenbosch University. She is a self-diagnosed workaholic, excelling in various roles such as marketing, publicity, social media, and strategic partnerships. Ingrid's commitment to promoting wellness and balance extends beyond her professional endeavours, as she is also an avid yoga teacher.

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