Index Arbitrage definition

Index Arbitrage means a trading strategy in which pricing is based on discrepancies between a "basket" or group of stocks and the derivative index product (i.e. a basis trade) involving the purchase or sale of a "basket" or group of stocks in conjunction with the purchase or sale, or intended purchase or sale, of one or more derivative index products in an attempt to profit by the price difference between the "basket" or group of stocks and the derivative index products. While the purchase or sale of the stocks must be in conjunction with the purchase or sale of derivative index products, the transaction need not be executed contemporaneously to be considered index arbitrage. The term "derivative index products" refers to cash- settled options or futures contracts on index stock groups, and options on any such futures contracts.
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Index Arbitrage. ’ means an arbitrage trading strategy involving the purchase or sale of a group of stocks in conjunction with the purchase or sale, or intended purchase or sale, of one or more cash-settled options or futures contracts on index stock groups or
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Index Arbitrage means a strategy that primarily involves trading in securities or related futures contracts to profit from temporary discrepancies between the prices of the securities comprising an index and the theoretical futures prices of the same index.
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Examples of Index Arbitrage in a sentence

  • Index Arbitrage (Spot market): This strategy is very similar to the index arbitrage strategy explained above.

  • Index Arbitrage: The Nifty 50 derives its value from fifty constituent stocks; the constituent stocks (in their respective weights) can be used to create a synthetic index matching the Nifty Index.

  • Index Arbitrage: As the Index derives its value from the underlying stocks, the underlying stocks can be used to create a synthetic index matching the Index levels.

  • Equity Index Arbitrage involves capturing the pricing differences that may arise between an index and its component stocks.

  • Following are some of the illustrations on the different types of Derivative exposure strategies that the Scheme may adopt: Example of Index Arbitrage replacing Company A, Company B and Company C with similar stocks.

  • Arbitrage – Arbitrage strategies exist to take advantage of discrepancies between prices or markets, for example: Index Arbitrage: Simultaneous buying (selling) of stock index futures while selling (buying) the underlying stocks of that index with the goal of capturing the profit between the two baskets.

  • Index Arbitrage: An Index derives its value from the underlying stocks and the underlying stocks can be used to create a synthetic index matching the Index levels.

  • Mr. Orser began his career in finance supporting an Index Arbitrage desk at RBC Dominion Securities, then moved to Merrill Lynch where he worked on the trading desk for the Equity Linked Products Group.

  • Risk Management with Futures, Cost of Carry Model, Index Arbitrage, Purchasing Power Parity Theorem.

  • Index Arbitrage (Spot market):This strategy is very similar to the index arbitrage strategy explained above.This strategy can be executed when the index future is trading at a premium to the underlying index.

Related to Index Arbitrage

  • Accounting Arbitrator has the meaning set forth in Section 2.6(c).

  • trade dispute means any dispute or difference between employers and workmen, or between workmen and workmen, connected with the employment or non-employment, or the terms of employment, or with the conditions of labour, of any person;

  • Benchmark Gilt means, in respect of a Reset Period, such United Kingdom government security having a maturity date on or about the last day of such Reset Period as the Calculation Agent, with the advice of the Reference Banks, may determine to be appropriate;

  • Dispute Board (DB) means the person or persons named as such in the SCC appointed by agreement between the Procuring Entity and the Contractor to make a decision with respect to any dispute or difference between the Procuring Entity and the Contractor referred to him or her by the Parties pursuant to GCC Sub-Clause 46.1 (Dispute Board) hereof.

  • ICC Rules means the Rules of Arbitration of the International Chamber of Commerce in effect on the date the applicable arbitration proceeding begins.

  • CPR means cardiopulmonary resuscitation.

  • Notice of Arbitration means the formal notice from the CONTRACTOR or the CUSTOMER to the other party referring a dispute to arbitration in accordance with the provisions of Schedule 2-9.

  • Expedited Dispute Timetable means the timetable set out in paragraph 164 of Call Off Schedule 11 (Dispute Resolution Procedure);

  • Arbitrable Dispute means any dispute arising under or in connection with this Agreement.

  • UNCITRAL Arbitration Rules means the arbitration rules of the United Nations Commission on International Trade Law.

  • AAA Rules has the meaning set forth in Section 11.2.

  • Benchmark Replacement Adjustment means, with respect to any replacement of the then-current Benchmark with an Unadjusted Benchmark Replacement, the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected by the Administrative Agent and the Borrower giving due consideration to (a) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental Body or (b) any evolving or then-prevailing market convention for determining a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement for Dollar-denominated syndicated credit facilities at such time.

  • Commercial Discovery means a Discovery of Petroleum reserves which has been declared as a Commercial Discovery in accordance with the provisions of Article 10 and/or Article 21.

  • Formal Dispute means a written objection by an Interested Party to any of the following:

  • AAA means the American Arbitration Association.

  • Voluntary arbitration means the procedure whereby parties involved in a labor dispute

  • Urban Coordinating Council Empowerment Neighborhood means a neighborhood given priority access to State resources through the New Jersey Redevelopment Authority.

  • Arbitration Act means the Arbitration and Conciliation Act, 1996 and shall include modifications to or any re-enactment thereof, as in force from time to time;

  • JAMS Rules has the meaning assigned thereto in Section 13 hereof.

  • Conciliator means an individual appointed as such in terms of section 82;

  • LCIA means the London Court of International Arbitration;

  • Benchmark Rate means, with respect to any Redemption Date, the rate per annum equal to the annual equivalent yield to maturity or interpolated maturity of the Comparable Benchmark Issue (as defined below), assuming a price for the Comparable Benchmark Issue (expressed as a percentage of its principal amount) equal to the Comparable Benchmark Price for such Redemption Date.

  • HKIAC Rules shall have the meaning ascribed to it in Section 10.13(a).

  • Reconciliation Dispute has the meaning set forth in Section 7.9 of this Agreement.

  • Dispute Period shall have the meaning specified in Section 9.3(a).