arbitrage

Definition

Attempting to profit by exploiting price differences of identical or similar financial instruments, on different markets or in different forms. The ideal version is riskless arbitrage.

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Related Terms

convertible hedge, covered arbitrage, parallel importing, purchasing power parity, conversion arbitrage, convertible arbitrage, fixed-income arbitrage, index arbitrage, reversal arbitrage, statistical arbitrage

'arbitrage ' appears in the definitions of these terms on BusinessDictionary.com
 



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