Riskless arbitrage

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Riskless arbitrage

The simultaneous purchase and sale of the same asset to yield a profit.

Riskless Arbitrage

The act of buying an asset and immediately selling the same asset for a higher price. For example, one may execute two orders at once, one to buy a security at $10 and one to sell the same security at $12. The short time frame involved means that riskless arbitrage occurs without investment; there is no rate of return or anything like it because the asset is immediately sold. One simply makes a profit on the deal.
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The ORIGINAL Flash Boys -- High-speed trading has been around since the 1790s; the quest for speed and near riskless profit has been with us for centuries.
If any mispricing is observed, a riskless profit can be generated by dynamic hedging approach that consists of creating risk-neutral hedge positions i.
Arbitrage as an idea is comparatively simple: it involves buying something "cheap" in one market and simultaneously (or nearly simultaneously) selling it "dear" in another, making a riskless profit from the price difference.
Even after paying ` 500 as borrowing cost, we will generate ` 1,500 as riskless profit.
Even after paying Rs 500 as borrowing cost, we will generate Rs 1,500 as riskless profit.
The banks use this borrowed capital to buy guaranteed government debt, taking the difference in yields as riskless profit.
ARBITRAGE: In finance theory, arbitrage is a riskless profit, like finding a $20 bill on the sidewalk.
1951, one could make a riskless profit by selling the option and holding 1/2 shares of the stock.
Arbitrage involves simultaneously at least two transactions in different markets giving the investor a riskless profit.
2 (averaged over widely varying individual outcomes of, let's say, 32 sessions), an associative RV experiment using the roulette as a random number generator determining the target would result nearly always in a riskless profit in the long run (using a safe betting scheme).
The principle simply assumes that arbitrageurs enter the market and quickly eliminate mispricing if a riskless profit opportunity exists.
The complaint further alleges that by engaging in "interpositioning," the Specialist Defendants caused public investors (including plaintiff and the Class) to incur damages by allegedly depriving them of the sale price for their stock that they would have realized had the Specialist Defendants properly matched orders rather than engaging in interpositioning in order to lock in a riskless profit.