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Riskless arbitrage |
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Riskless arbitrageThe simultaneous purchase and sale of the same asset to yield a profit.Riskless arbitrage Similar MatchesSpecial arbitrage accountSpecial arbitrage accountA margin account with lower cash requirements, reserved for transactions that are hedged by an offsetting position in futures or options. ArbitrageurArbitrageurOne who profits from the differences in price when the same, or extremely similar, security, currency, or commodity is traded on two or more markets. The Arbitrageur profits by simultaneously purchasing and selling these securities to take advantage of pricing differentials (spreads) created by market conditions. See: Risk arbitrage, convertible arbitrage, index arbitrage, and international arbitrage. Locational arbitrageLocational arbitrageAttempt to exploit discrepancies in exchange rates between banks. One-way arbitrageOne-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). Covered interest arbitrageCovered interest arbitrageOccurs when a portfolio manager invests dollars in an instrument denominated in a foreign currency and hedges the resulting foreign exchange risk by selling the proceeds of the investment forward for dollars. Further SuggestionsDiscount ArbitrageIndex arbitrage Tax arbitrage Triangular arbitrage Arbitrage Structured arbitrage transaction Covered interest arbitrage Convertible Arbitrage Arbitrage bonds Triangular arbitrage Risk controlled arbitrage Currency arbitrage International arbitrage Merger Arbitrage Reversal Arbitrage conversion arbitrage arbitrage arbitrageur Multiple Arbitrage Arbitrage free option pricing models Arbitrage Trading Program (ATP) |
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