Can you smart guys explain to me

[Flystripper]

Originally Posted by Archaea

some fundamental principles of arbitrage.

What are the fundamental assumptions? From what very little I know it involves the exchange of interest rates, but perhaps that's too simplistic.

Are there any good reads on the subject?

Arbitrage is riskless profit of any kind. What kind of arbitrage are you wondering about? Interest rate? Exchange rate? With transaction costs and efficient global markets true arbitrage is nearly impossible.