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arbitrage
(redirected from arbitrages)

   Also found in: Dictionary/thesaurus, Legal, Financial, Wikipedia 0.01 sec.
arbitrage: see foreign exchange foreign exchange, methods and instruments used to adjust the payment of debts between two nations that employ different currency systems. A nation's balance of payments has an important effect on the exchange rate of its currency.
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arbitrage

Business operation involving the purchase of foreign currency, gold, financial securities, or commodities in one market and their almost simultaneous sale in another market, in order to profit from price differentials existing between the markets. In the 1980s a form of speculation called risk arbitrage arose, in which speculators tried to identify companies targeted for takeover and buy blocks of their stock, to be resold at a profit when the takeover was announced and the company's stock rose in value. See also insider trading; security.



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It''s very handy to buy a diary specifically for your arbitrage trades and jot down the specific events you''ll be hunting for arbitrages in.
15) Such arbitrages are distinguishable from economic arbitrage in that they involve investments that have real economic risk--i.
 
 
 
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