Special arbitrage account


 

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Special arbitrage account

A margin account with lower cash requirements, reserved for transactions that are hedged by an offsetting position in futures or options.



Special arbitrage account

Similar Matches

Currency arbitrage

Currency arbitrage

Taking advantage of divergences in exchange rates in different money markets by buying a currency in one market and selling it in another market.


International arbitrage

International arbitrage

Simultaneous 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.


Discount Arbitrage

Discount Arbitrage

A riskless arbitrage in which a discount option is purchased and an opposite position is taken in the underlying security. The arbitrageur may either buy a call at a discount and simultaneously sell the underlying security (basic call arbitrage) or maybuy a put at a discount and simultaneously buy the underlying security (basic put arbitrage). See also Discount.


Risk controlled arbitrage

Risk controlled arbitrage

A self-funding, self-hedged series of transactions that generally use mortgage securities (MBS) as the primary assets.


Reversal Arbitrage

Reversal Arbitrage

A riskless arbitrage that involves selling the stock short, writing a put, and buying a call. The options have the same terms.


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One-way arbitrage
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Arbitrage Trading Program (ATP)
Convertible Arbitrage


 
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