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 ?
And many patients in Coventry and Warwickshire with ARBI are being treated in an inappropriate setting.
Arbi and Isnajil were accompanied to the police office by Sulu Gov.
Ils sont au nombre de 24 : Habib Bribech ,Dalila Bouain, Mahmoud El May, Nafti Mahdhi, Arbi Abid, Nejib Mrad ,Nizar Makhloufi ,Ibrahim Hamdi ,Ibrahim Kassas, Ahmed Smiai ,Ahmed Nejib Chebbi ,Ahmed Brahim ,Faiza Kadoussi ,Mohamed Karray Jerbi ,Jdidi EssbouEi ,Fattouma Attia ,Naoufel Ghribi ,Hajer Mnifi ,Wissem Yassine, Slaheddine Zahaf ,Abderrahmane Ladgham ,Mohamed Lotfi Ben Mesbah, Abdelwahab Mtar.
According to the report, Faraj Mohammed Arbi, a 30-year-old resident of Timbuktu, worked as a cook and cleaner at the facility.
The test of a great menu is something as deceptively simple as Tawa Arbi Satay -- if the chef can make arbi look exciting and taste heavenly, you know you're on to a good thing.
A TV crew who were allowed to accompany a doctor inside the building, filmed the masked hostage-takers and the group's leader, Movsar Barayev, nephew of rebel warlord Arbi Barayev.
Mr Kennedy's group were the first foreign hostages to be killed in Chechnya and the exact circumstances remain a mystery, despite local authorities naming the killers' leader as Arbi Barayev.
Alshaber Arbi, 18, a student from Caluang National Highschool; and Gerry Isnajil, a teacher from Kalingalan Caluang Highschool were accompanied by Gov.
This has been told by APML Joint Secretary Information (JSI) Shehzad Arbi Satti in a press release.
Tenders are invited for Maintenance Of 5 Years Completed Pmgsy Road (A) Rd Road To Arbi Road (Or 27-47 ) (B) Badairukubadi To Champikota (Or-27-34) For The Year 2017-18 In The District Of Rayagada
Le president de la Ligue Nationale de Football Professionnel (LNFP), Mohamed Al Arbi, a lance un appel aux dirigeants de la Ligue 2 de football professionnel pour oeuvrer a "respecter le fair play et eviter la tension afin que les matchs de play-off se deroulent dans un climat apaise loin de tout violence et anarchie".
Goals were scored by Yannick Ndjeng (69) and Arbi Jabeur (90+1) for Esperance and Ahmed Dofor (14) for Al Merreikh.