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Financial Terms | |
Riskless arbitrage |
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Definition of Riskless arbitrageRiskless arbitrageThe simultaneous purchase and sale of the same asset to yield a profit.
Related Terms:ArbitrageThe simultaneous buying and selling of a security at two different prices in two different markets, ArbitrageThe purchase of securities on one market for immediate resale on ArbitrageTransactions designed to make a sure profit from inconsistent prices. Arbitrage-free option-pricing modelsYield curve option-pricing models. Arbitrage Pricing Theory (APT)An alternative model to the capital asset pricing model developed by ArbitrageursPeople who search for and exploit arbitrage opportunities. Covered interest arbitrageA portfolio manager invests dollars in an instrument denominated in a foreign ![]() Currency arbitrageTaking advantage of divergences in exchange rates in different money markets by Index arbitrageAn investment/trading strategy that exploits divergences between actual and theoretical Risk arbitrageSpeculation on perceived mispriced securities, usually in connection with merger and Risk controlled arbitrageA self-funding, self-hedged series of transactions that generally utilize mortgage Riskless or risk-free assetAn asset whose future return is known today with certainty. The risk free asset is Riskless rateThe rate earned on a riskless investment, typically the rate earned on the 90-day U.S. Treasury Bill. Riskless rate of returnThe rate earned on a riskless asset. Structured arbitrage transactionA self-funding, self-hedged series of transactions that usually utilize Triangular arbitrageStriking offsetting deals among three markets simultaneously to obtain an arbitrage profit. Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |