What is an Arbitrageur? - Definition and Explanation

c. A profit-motivated trader.

An arbitrageur is a type of trader who seeks to profit from price discrepancies across different markets. They buy assets in one market and simultaneously sell them in another market where the price is higher, taking advantage of the price difference to generate a risk-free profit.

Arbitrageurs play a crucial role in maintaining market efficiency by exploiting price discrepancies and forcing prices to converge. They are often considered 'profit-motivated traders' as their primary goal is to generate profits from these price discrepancies.