# Fundamental Theorem of Asset Pricing

*Quant & Pricing — Finicade finance glossary*

The result tying it all together: no arbitrage exists if and only if there's a risk-neutral probability measure that prices everything. It's why the risk-neutral trick is valid, not just convenient.

**Also known as:** fundamental theorem of asset pricing

**Related terms:** [No-Arbitrage](https://finicade.com/glossary/no-arbitrage), [Risk-Neutral Pricing](https://finicade.com/glossary/risk-neutral-pricing), [Martingale](https://finicade.com/glossary/martingale)

**Taught in:** Math Masters — Integrals: Area, Probability, Expectation

Source: https://finicade.com/glossary/fundamental-theorem