Arbitrage - Definition

The simultaneous purchase and sale of a security equivalent in the different markets in Order to profit from price discrepancies. Under currency swaps, arbitrage refers to a disparity in rates between the three currencies pairs (Triangular Arbitrage) or inefficiencies between securities listed identically on the different markets arises from fluctuations in exchange rates.



Terms near "Arbitrage"

Around
Ask (Offer) Price
Asset Allocation
Association Cambiste International
At Best
At or Better
At Par Forward Spread
At the Price Stop-Loss Order
At-the-Money
Auction
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