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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 MatchesCovered 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. Arbitrage bondsArbitrage bondsMunicipality issued bonds issued intended to gain an interest rate advantage by refunding a higher-rate bond in ahead of their call date. Lower-rate refunding issue proceeds are invested in Treasuries until the first call date of the higher-rate issue. 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. Riskless arbitrageRiskless arbitrageThe simultaneous purchase and sale of the same asset to yield a profit. Reversal ArbitrageReversal ArbitrageA riskless arbitrage that involves selling the stock short, writing a put, and buying a call. The options have the same terms. Further SuggestionsarbitrageLocational arbitrage Arbitrage Convertible Arbitrage Tax arbitrage Arbitrage free option pricing models Structured arbitrage transaction One-way arbitrage Arbitrageur International arbitrage Triangular arbitrage arbitrageur Arbitrage Trading Program (ATP) Risk controlled arbitrage Triangular arbitrage Discount Arbitrage Currency arbitrage conversion arbitrage Merger Arbitrage Index arbitrage Multiple Arbitrage |
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