arbitrageur

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Related to arbitrageurs: Hedgers

Arbitrageur

One who profits from the differences in price when the same, or extremely similar, security, currency, or commodity is traded on two or more markets. The arbitrageur profits by simultaneously purchasing and selling these securities to take advantage of pricing differentials (spreads) created by market conditions. See: Risk arbitrage, convertible arbitrage, index arbitrage, and international arbitrage.

Arbitrageur

A trader who practices arbitrage. That is, an arbitrageur attempts to profit from inefficiencies in price by making transactions that offset each other. For example, one may buy a security at a low price, and, within a few seconds, re-sell it to a willing buyer at a higher price. Arbitrageurs can keep prices relatively stable as markets attempt to resist their attempts at price exploitation. They often use computer programs because their transactions can be complex and occur in rapid succession.

arbitrageur

One who engages in arbitrage. Also called arb.

arbitrageur

a person or firm which purchases SHARES in a company and other FINANCIAL SECURITIES in the hope of making a windfall profit. Arbitrageurs deliberately put a company into ‘play’; that is, by making strategic share purchases in the company the arbitrageur fuels SPECULATION that a TAKEOVER BID is in the offing, causing the company's share price to rise. The arbitrageur then sells off his stake at a suitable profit. See ARBITRAGE.
References in periodicals archive ?
Shleifer and Vishny (1997) provided an insightful model of wealth-constrained arbitrageurs that can be, and has been, extended in several directions.
Shleifer and Summers (1990) provide an accessible summary of the fundamental and noise trader risks facing arbitrageurs and the role of investor sentiment in driving stock prices away from fundamentals.
Such an opportunity cannot persist as arbitrageurs will take advantage of the mispricing until (2a) holds.
Instead, the arbitrageurs force the banks to cause appropriate changes in the bond interest rate.
The arbitrageur is looking for a guaranteed profit.
The DGCX INR/Dollar futures contract is the only exchange-traded Rupee futures outside of India, and is witnessing new interest from businesses, arbitrageurs and investors," said Hasham.
Ang and Cheng further note that both advantages are important to arbitrageurs as well as hedgers.
Ticket arbitrageurs are using very clever software to circumvent the protections that are supposed to level the playing field for online ticket buyers.
Arbitrageurs integrate the markets for different maturities, incorporating information about expected short rates into bond prices.
In the recent tussle for Canary Wharf the persistent buyers were arbitrageurs, mostly American operators who buy into bid situations.
The arbitrage proof of Proposition I introduced a new standard in finance, namely that any result the finance profession takes seriously must have the critical property that it cannot be undermined by clever arbitrageurs.
Securities lending is used by arbitrageurs and short-sale speculators.