arbitrage

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arbitrage:

see foreign exchangeforeign 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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References in periodicals archive ?
The trainers of Jubilee Ace presented to the eager crowd on the basis of arbitrage and the various different types of arbitrage.
* Convertible arbitrage -- This is buying a domestic convertible bond long and selling the underlying stock short.
* Collateralized mortgage obligations arbitrage -- Here you purchase both CMO residuals and principal-only pieces in correct proportions, so that the interest-rate sensitivities of these two pieces offset each other, while still maintaining a high yield in the combined position.
However, the information contained in the odds was still exploitable to gain profits through arbitrage and active betting strategies.
The authors examined 5,478 European football matches and found only 0.18% of games created intra-market arbitrage trades that beat the commission charged.
One of the well-discussed pure arbitrage examples is "covered interest arbitrage" (e.g., Madura, 2007), which involves coinstantaneous transactions across the domestic and foreign spot currency markets, the domestic and foreign forward/futures currency markets, in addition to the domestic and foreign credit markets.
By examining the spot-forward relationship in some specific currency markets and domestic-foreign relationship in corresponding credit markets, the main objectives of this research work are a) to find out the frequency of pure arbitrage conditions; b) to indentify the underlying factors that may lead to the occurrence of pure arbitrage conditions; c) to test the accuracy of the model that we build for predicting the pure arbitrage conditions; and d) to summarize the rules regarding how the changes in exchange rates and interest rates can affect the timings on which the pure arbitrage opportunities occur and end.
This "harnessing" of the costs of international tax arbitrage will not always be the appropriate response to every particular arbitrage transaction, but it should be considered when other, more traditional responses prove inadequate.
However, one planning strategy unique to the cross-border setting (commonly referred to as "international tax arbitrage" or "cross-border tax arbitrage") is different.
This paper focuses on creating new marketable capital generated from the assets in inner city areas using sophisticated financial approach of arbitrage value capturing and exchanges.
The core is that there are arbitrage strategies applicable in the conventional market systems that can be employed to create value for distressed inner-city property, institutional, recognized reputations can be employed to create value for distressed inner city property.