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One-way arbitrage |
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One-way arbitrageThe use, by a potential supplier or demander in a market, of a different market or markets to accomplish the same purpose, taking advantage of a discrepancy among their prices. With transaction costs, this enforces smaller price discrepancies than would be permited by conventional arbitrage. Due to Deardorff (1979).Similar MatchesMerger ArbitrageMerger ArbitrageIn the context of hedge funds, a style of management that involves the simultaneous purchase of stock in a company being acquired and the sale of stock in its acquirer. Covered interest arbitrageCovered interest arbitrageA combination of transactions on two countries' securities and exchange markets designed to profit from failure of covered interest parity. A typical set of transactions would include selling bonds in one market, using the proceeds to buy spot foreign currency and foreign bonds, and selling forward the return at a future date. See also one-way arbitrage. Structured arbitrage transactionStructured arbitrage transactionA self-funding, self-hedged series of transactions that usually use mortgage-backed securities (MBS) as the primary assets. Special arbitrage accountSpecial arbitrage accountA margin account with lower cash requirements, reserved for transactions that are hedged by an offsetting position in futures or options. Tax arbitrageTax arbitrageTrading that takes advantage of a difference in tax rates or tax systems as the basis for profit. Further SuggestionsCurrency arbitrageLocational arbitrage conversion arbitrage Multiple Arbitrage Discount Arbitrage Arbitrage free option pricing models Arbitrage Trading Program (ATP) International arbitrage Triangular arbitrage Triangular arbitrage Reversal Arbitrage arbitrage Index arbitrage Risk controlled arbitrage arbitrageur Convertible Arbitrage Arbitrageur Riskless arbitrage Covered interest arbitrage Arbitrage Arbitrage bonds |
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