Arbitrage definition

Arbitrage a trading strategy which uses "Arbitrage transactions".
Arbitrage transaction" – an operation when an asset is bought on one market and at the same moment a matching asset is sold on a different market. This price difference is fixed on various exchange markets. It is easily observed, that the value of the portfolio remains almost unchanged regardless of the market movements (as the opposite trades offset each other). When the price difference changes to a positive side, the opposite arbitrage transaction of fixing profit is conducted. An arbitrage transaction is also a transaction conducted on one and the same market over a certain period of time on the condition that a considerable price gap between the quotes appears at the moment of trade opening or closing.
Arbitrage means arbitrage consistent with the practice of high frequency trading.

Examples of Arbitrage in a sentence

  • BNP Paribas Arbitrage S.N.C. 160-162 boulevard MacDonald, 75019 Paris, France.

  • Gabelli & Partners, LLC Gabelli Arbitrage Holdings LLC Gabelli Associates Fund Gabelli Associates Fund II, LP Gabelli Associates Limited Gabelli Associates Limited II E Gabelli Capital Structure Arbitrage Master, Ltd.

  • India's labour force is expected to touch 160-170 million by 2020, based on rate of population growth, increased labour force participation, and higher education enrolment, among other factors, according to a study by ASSOCHAM and Thought Arbitrage Research Institute.

  • Gabelli Arbitrage Holdings LLC GAMCO Asset Management (UK) Limited Gabelli Associates Fund Gabelli Associates Fund II Gabelli Associates Limited Gabelli Capital Structure Arbitrate, LP Gabelli Capital Structure Arbitrage, Ltd.

  • Arbitrage involves identifying, with the expectation of profiting from price differentials between markets or products.


More Definitions of Arbitrage

Arbitrage a trading strategy which uses "Arbitrage transactions". "Arbitrage transaction" – an operation, when an asset is bought on one market, and at the same moment a matching asset is sold on a different market. This price difference is fixed on various exchange markets. It is easily observed, that the value of the portfolio remains almost unchanged regardless of the market movements (as the opposite trades offset each other). When the price difference changes to a positive side, the opposite arbitrage transaction of fixing profit is conducted. An arbitrage transaction is also a transaction that includes only the asset purchasing (selling) on one type of the market without further selling (purchasing) on a different market, with the condition of that a considerable price gap between the quotes of these two related markets appears at the moment of opening or closing the trade.
Arbitrage means the sale or purchase of a Financial Instrument in one market and the taking of an equal and opposite position in a similar instrument in another market to provide a profit, i.e. exploiting pricing differences (anomalies) across markets;
Arbitrage means profiting from differences in price of the same security traded on two or more markets;
Arbitrage when used in this Agreement, unless the context otherwise requires, shall mean the buying or selling of a financial instrument and simultaneous taking of an equal and opposite position in a related market.
Arbitrage means Fletcher Income Arbitrage Fund, Ltd.
Arbitrage means the profit that results from borrowing at one interest rate and simultaneously lending the borrowed money at a higher interest rate. Federal tax laws applicable to tax-exempt bonds strictly limit the ability of a local governmental issuer of bonds to earn or retain arbitrage profits by investing bond proceeds in investments that earn a higher rate of interest than the interest rate being paid on the bonds.
Arbitrage and "cutting foreign exchange", or the behavior of profiting from the price difference due to the delay of the network connection, cannot exist in the over-the-counter market where customers directly buy and sell with the dealer. ACU Bullion does not allow customers to conduct such arbitrage on the trading platform of ACU Bullion. Transactions that rely on arbitrage opportunities due to price lag may be cancelled. ACU Bullion reserves the right to make necessary changes and adjustments to the accounts involved in the above-mentioned transactions. ACU Bullion has the sole discretion to request traders to intervene or approve all orders and or terminate the accounts of relevant customers. ACU Bullion can completely resolve disputes arising from arbitrage or price manipulation on its own. ACU Bullion reserves the right to restrict withdrawals until the above problems can be solved. Any actions or resolutions stated here will not damage or cause ACU Bullion to waive any rights or compensations to customers and its employees.