Editing Rational pricing (section)

===The law of one price===
The same asset must trade at the same price on all markets ("the [[law of one price]]").
Where this is not true, the arbitrageur will:
# buy the asset on the market where it has the lower price, and simultaneously sell it ([[short selling|short]]) on the second market at the higher price
# deliver the asset to the buyer and receive that higher price
# pay the seller on the cheaper market with the proceeds and pocket the difference.