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

  • Arbitrage transaction – an operation which consists in buying assets on one market and at the same time selling its counterpart on another market.

  • ASK The highest quote in the quotes, the quote at which the Client can buy Arbitrage Arbitrage order BID Quotes database Base currency Balance Bar Fast market The market condition, when during a short period of time an extreme rate changes occur.

  • ASK The highest quote in the quotes, the quote at which the Client can buy Arbitrage The trading strategy, where “Arbitrage orders” are used Arbitrage order An asset is bought at one market, and at the same time its analogue is sold at the other.

  • Arbitrage describes any trading result that is the outcome of actions that either eliminate the risk totally or significantly, usually abusing features provided by the Company.

  • Within 55 days of the end of each fifth Rebate Year, upon the written direction of the Governmental Lender, Bond Counsel or the Rebate Analyst, an amount shall be deposited to the Rebate Fund by the Fiscal Agent from amounts provided by the Borrower, if and to the extent required so that the balance in the Rebate Fund shall equal the amount of Rebatable Arbitrage so calculated in accordance with the preceding paragraph.


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 that the interest rate being paid on the bonds.
Arbitrage means earnings from the investment of Bond proceeds in excess of the amount that would have been earned had the funds been invested at the Bond yield, adjusted for certain expenses.