Arbitrage
Definition
A strategy involving the simultaneous purchase and sale of identical or equivalent commodity futures contracts or other instruments across two or more markets in order to benefit from a discrepancy in their price relationship. In a theoretical efficient market, there is a lack of opportunity for profitable arbitrage. See Spread.
Related Terms Other terms related to 'Arbitrage' starting with the letter 'A' Artificial Price, Auction Rate Security, Agency Bond, Asian Option, Actuals Browse by Letter » A B C D E F G H I J K L M N O P Q R S T U V W Y Z
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