arbitrage

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Arbitrage

The simultaneous buying and selling of a security at two different prices in two different markets, resulting in profits without risk. Perfectly efficient markets present no arbitrage opportunities. Perfectly efficient markets seldom exist, but, arbitrage opportunities are often precluded because of transactions costs.

Arbitrage

An investment practice that 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 try to resist their attempts at price exploitation. Arbitrageurs often use computer programs because their transactions can be complex and occur in rapid succession.

arbitrage

The simultaneous purchase and sale of substantially identical assets in order to profit from a price difference between the two assets. As a hypothetical example, if General Electric common stock trades at $45 on the New York Stock Exchange and at $44.50 on the Philadelphia Stock Exchange, an investor could guarantee a profit by purchasing the stock on the Philadelphia Stock Exchange and simultaneously selling the same amount of stock on the NYSE. Of course, the price difference must be sufficiently great to offset commissions. Arbitrage may be employed by using various security combinations including stock and options and convertibles and stock. See also basis trading, risk arbitrage.

Arbitrage.

Arbitrage is the technique of simultaneously buying at a lower price in one market and selling at a higher price in another market to make a profit on the spread between the prices.

Although the price difference may be very small, arbitrageurs, or arbs, typically trade regularly and in huge volume, so they can make sizable profits.

But the strategy, which depends on split-second timing, can also backfire if interest rates, prices, currency exchange rates, or other factors move in ways the arbitrageurs don't anticipate.

arbitrage

the buying and selling of PRODUCTS, FINANCIAL SECURITIES or FOREIGN CURRENCIES between two or more markets in order to take profitable advantage of any differences in the prices quoted in those markets.

If the price of the same product is different, as between two markets, a dealer, by simultaneously buying in the lower-priced market and reselling in the higher-priced market, stands to make a profit on the transaction (allowing for dealing expenses). Arbitrage thus serves to narrow or eliminate price differentials between markets, with buying in the lower-priced market causing prices to rise there, and selling in the higher-priced market causing prices to fall. See SPOT MARKET, ARBITRAGEUR, SPECULATION, COVERED INTEREST ARBITRAGE.

arbitrage

the buying or selling of PRODUCTS, FINANCIAL SECURITIES or FOREIGN CURRENCIES between two or more MARKETS in order to take profitable advantage of any differences in the prices quoted in these markets. By simultaneously buying in a low-price market and selling in the high-price market a dealer can make a profit from any disparity in prices between them, though in the process of buying and selling the dealer will add to DEMAND in the low-price market and add to SUPPLY in the high-price market, so narrowing or eliminating the price disparity. See SPOT MARKET, FUTURES MARKET, COVERED INTEREST ARBITRAGE.

arbitrage

The simultaneous purchase in one market and sale in another market of a commodity, security,or monies,in the expectation of making a profit on price differences in the differing markets. Generally thought of as involving foreign currency exchanges,in which one enters contracts to buy euros and sell yen and hopefully make money in a moment in time when the exchange rates work out in one's favor (this is highly risky).

References in periodicals archive ?
One of the biggest problems, she said, is that cases of ARBI are going undiagnosed due to lack of expertise in the NHS and because of the large number of different symptoms present in patients including memory loss, depression, loss of balance, tingling, numbness and pain in the hands, feet and legs.
GenBank Gene Sequence (5' accession [right arrow] 3') number Fixed primers Sucrose synthase (SuSy) GGAGGAGCTGAGTGTTTC AF263384 Sucrose phosphate synthase (SuPS) CGACAACTGGATCAACAG AB001338 Pyruvate orthophosphate dikinase (PODK) CGTAAAGATTGCTGTGGA AF194026 Soluble acid invertase (SAI) AGGACGAGACCACACTCT AF062735 Calcium dependent protein kinase (CDPK) ACAGAACCACCAAAGGAG CF572977 Starch synthase (StSy) GGCAAGAAGAAGTTCGAG AF446084 Arbitrary primers Arbi 1 GACTGCGTACGAATTAAT Arbi 2 GACTGCGTACGAATTGAC Arbi 3 GACTGCGTACGAATTTGA Table 3.
That must be well remembered," Arbi was quoted by Kompas daily as saying.
What Arbi and possibly other Jews seem not to have perceived as they observed Christian behavior or even adopted its outward forms was that unlike Christians, Jews lived within a social and cultural system that effectively united--or at least never theoretically gauged the distinction between--the temporal and the spiritual, the sacred and the profane.
ARBI specializes in a broad range of classes of both insurance and reinsurance solutions.
The Croatians were ahead in just nine minutes when El Arbi Hillel Soudani thumped home a header but the lead lasted less than a minute as Esquerdinha threw the Albanian minnows a lifeline.
En effet, selon le quotidien local Al Sharq Al Awssat, les responsables d'Al Hilal ont mis sur leurs tablettes les deux internationaux algeriens, Yacine Brahimi et Hilal El Arbi Soudani, pour un eventuel transfert.
Hedi Arbi, ministre de l'Equipement, de l'amenagement du territoire et du developpement durable, a annonce que le chef du gouvernement, Mehdi Jomaa a ordonne l'ouverture de la decharge de Guellala pour eviter le risque environnemental relatif a la presence massive des ordures a Djerba, notamment dans la region de Houmt Souk.
Playing a 4-1-4-1 formation that transforms into 4-1-3-2 on the attack -- with central midfielder Al Arbi Soudani moving forward to join Islam Slimani up front -- Algeria are no longer just set up to contain.
A plenary session was held under the chairmanship of Second Vice-President of the NCA Arbi Abid, with attendance of 128 deputies.
embassies in Afghanistan, Algeria, Bahrain, Bangladesh, Djibouti, Egypt, Iraq, Jordan, Kuwait, Libya, Mauritania, Oman, Qatar, Saudi Arabia, Sudan, the United Arab Emirates and Yemen will be closed, while the consulates that will be shut are Arbi, Dhahran, Jeddah and Dubai.
The 'Desert Foxes', riding high in the FIFA Ranking list in 24th place, have a lot to build on after the narrow win in Casablanca to a goal by substitute El Arbi Hillel Soudani, that is considered as an away goal, but in facing the 'Mediterranean Knights' they will find a team hungry hungry as much as them for a good result that would earn them a place in the finals of the CAN competition for the second time running.