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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 MatchesCovered 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. 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. International arbitrageInternational arbitrageSimultaneous buying and selling of foreign securities and ADRs to capture the profit potential created by time, currency, and settlement inconsistencies that vary across international borders. ArbitrageArbitrageThe simultaneous purchase and sale of two different, but closely related, securities to take advantage of a disparity in their prices. Alternatively, the purchase and sale of the same security in different markets.Originally, most arbitrage occurred in the currency markets: arbitrageurs would buy in one market and sell in another. Nowadays, the practice applies equally to commodities, futures and stocks. For instance, if a company is dual-listed on two stock exchanges, and the prices are at variance, an arbitrageur has an opportunity to buy in one market and sell in another before the disparity is closed. Risk controlled arbitrageRisk controlled arbitrageA self-funding, self-hedged series of transactions that generally use mortgage securities (MBS) as the primary assets. Further SuggestionsMerger ArbitrageCurrency arbitrage One-way arbitrage Reversal Arbitrage Locational arbitrage Covered interest arbitrage Arbitrage Trading Program (ATP) Multiple Arbitrage Arbitrage free option pricing models Arbitrage Tax arbitrage Index arbitrage Discount Arbitrage arbitrageur Triangular arbitrage Arbitrage bonds conversion arbitrage Convertible Arbitrage Structured arbitrage transaction Special arbitrage account Triangular arbitrage |
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