Information about financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.
Main Page: payroll, financial advisor, tax advisor, business, accounting, stock trading, finance, credit,
Definition of Currency arbitrage
Taking advantage of divergences in exchange rates in different money markets by
The simultaneous buying and selling of a security at two different prices in two different markets,
The purchase of securities on one market for immediate resale on
Transactions designed to make a sure profit from inconsistent prices.
Yield curve option-pricing models.
An alternative model to the capital asset pricing model developed by
People who search for and exploit arbitrage opportunities.
Dollar deposits held in Singapore or other Asian centers.
A currency that is not freely convertible to other currencies due to exchange controls.
A portfolio manager invests dollars in an instrument denominated in a foreign
The value of a portfolio of specific amounts of individual currencies, used as the basis for
A financial future contract for the delivery of a specified foreign currency.
An option to buy or sell a foreign currency.
Related: Exchange rate risk
An agreement by the parties to a transaction to share the currency risk associated with
Asset allocation in which the investor chooses among investments denominated in
An agreement to swap a series of specified payment obligations denominated in one currency
Devaluation A decrease in the spot price of the currency
Eurobonds that pay coupon interest in one currency but pay the principal in a different
A short-term fixed rate time deposit denominated in a currency other than the local
The money market for borrowing and lending currencies that are held in the form of
European Currency Unit (ECU)
An index of foreign exchange consisting of about 10 European currencies,
Foreign currency option
An option that conveys the right to buy or sell a specified amount of foreign
Foreign currency translation
The process of restating foreign currency accounts of subsidiaries into the
A freely convertible currency that is not expected to depreciate in value in the foreseeable future.
An investment/trading strategy that exploits divergences between actual and theoretical
Such a clause on a Euro loan permits the borrower to switch from one currency to
Give the borrower the possibility of drawing a loan in different currencies.
The currency in which the parent firm prepares its own financial statements; that is, U.S.
A foreign currency held by a central bank or monetary authority for the purposes of
A currency, frequently the U.S. dollar, that is used by other countries to denominate the assets they hold as international reserves.
Speculation on perceived mispriced securities, usually in connection with merger and
Risk controlled arbitrage
A self-funding, self-hedged series of transactions that generally utilize mortgage
The simultaneous purchase and sale of the same asset to yield a profit.
A currency that is expected to drop in value relative to other currencies.
Structured arbitrage transaction
A self-funding, self-hedged series of transactions that usually utilize
Striking offsetting deals among three markets simultaneously to obtain an arbitrage profit.
Virtual currency option
A new option contract introduced by the PHLX in 1994 that is settled in US$ rather
American Depositary Receipts (ADRs)
Certificates issued by a U.S. depositary bank, representing foreign
Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit.