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Special arbitrage account |
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Special arbitrage accountA margin account with lower cash requirements, reserved for transactions that are hedged by an offsetting position in futures or options.Special arbitrage account Similar MatchesCurrency arbitrageCurrency arbitrageTaking advantage of divergences in exchange rates in different money markets by buying a currency in one market and selling it in another market. Reversal ArbitrageReversal ArbitrageA riskless arbitrage that involves selling the stock short, writing a put, and buying a call. The options have the same terms. 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). Tax arbitrageTax arbitrageTrading that takes advantage of a difference in tax rates or tax systems as the basis for profit. 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 SuggestionsArbitrage free option pricing modelsconversion arbitrage Index arbitrage Triangular arbitrage Structured arbitrage transaction Arbitrage Arbitrage Trading Program (ATP) Arbitrageur International arbitrage Triangular arbitrage Risk controlled arbitrage Multiple Arbitrage Riskless arbitrage Discount Arbitrage Covered interest arbitrage arbitrage Locational arbitrage arbitrageur Arbitrage bonds Merger Arbitrage Convertible Arbitrage |
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