Currency arbitrage

Currency arbitrage

Taking advantage of divergences in exchange rates in different money markets by buying a currency in one market and selling it in another market.

Currency Arbitrage

An investment strategy in which one buys a currency on one market and instantly sells it on another market. Currency arbitrage takes advantage of temporary discrepancies in price between the two markets. Because currency markets are so liquid, opportunities for currency arbitrage are few and generally last only for a few seconds. Conducting it requires sophisticated computer software.
References in periodicals archive ?
CEFC seems to be shifting to that role from an earlier image as a commodity trade financing player," said a senior Beijing trader, referring to CEFC's practice of using mixed aromatics to raise bank loans to profit from the currency arbitrage.
Its strategy is long term, fundamental seeking alpha opportunities in most market conditions by benefiting from currency arbitrage and exchange rate differentials.
There would be a natural currency arbitrage between dollar and sterling but we are not concerned.
The strategy is categorized as being Long Term, Fundamental that seeks alpha opportunities by exploiting currency arbitrage and exchange rate differentials.
com, capturing that currency arbitrage, and then resell the inventory to their customers at a 50 percent markup.
The three indices -- the S&P 500 Volatility Arbitrage Index, the S&P Currency Arbitrage Index and the S&P Long Only Merger Arbitrage Index -- are the first in what will be a series of arbitrage indices launched by Standard & Poor's in 2008.
On the one hand emerging markets debt securities trading and, to a lesser degree, currency arbitrage were under severe pressure during the three- month period.
The quarterly increase once again was attributable to substantially higher trading-related net interest generated by the firm's interest rate and currency arbitrage activities, reflecting the continued steepness of yield curves around the world.
Good results were also reported for currency arbitrage and leasing operations.