Index Arbitrage
Definition
The simultaneous purchase (sale) of stock index futures and the sale (purchase) of some or all of the component stocks that make up the particular stock index to profit from sufficiently large intermarket spreads between the futures contract and the index itself. Also see Arbitrage, Program Trading.
Related Terms Other terms related to 'Index Arbitrage' starting with the letter 'I' In Position, Invisible Supply, Indirect Bucketing, ISDA, Intracommodity Spread 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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