Dictionary
Financial Glossary
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 Arbitrage
Buying securities in one country, currency or market, and selling in another to take advantage of price differences.
Instruments that have identical characteristics and so are perfect substitutes should trade at the same price. If they do not, a risk-free profit can be generated by simultaneously selling the higher-priced asset and buying the lower priced asset. Arbitrage is the identification and exploitation of such price anomalies.
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. However, arbitrage opportunities are often precluded because of transactions costs.
The simultaneous purchase and selling of a security in order to profit from a differential in the price. This usually takes place on different exchanges or marketplaces.
profiting from the differences in price when the same security, currency or commodity is traded on two or more markets.
The simultaneous purchase and selling of a security in order to profit from a differential in the price, usually on different exchanges or marketplaces.
The simultaneous purchase and sale of two different, but closely related, securities to take advantage of a disparity in their prices. Alternatively, the purchase and sale of the same security in different markets.Originally, most arbitrage occurred in the currency markets: arbitrageurs would buy in one market and sell in another. Nowadays, the practice applies equally to commodities, futures and stocks. For instance, if a company is dual-listed on two stock exchanges, and the prices are at variance, an arbitrageur has an opportunity to buy in one market and sell in another before the disparity is closed.
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Glossary 
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Arbitrage \ Buying securities in one country, currency or market, and selling in another to take advantage of price differences.
Instruments that have identical characteristics and so are perfect substitutes should trade at the same price. If they do not, a risk-free profit can be generated by simultaneously selling the higher-priced asset and buying the lower priced asset. Arbitrage is the identification and exploitation of such price anomalies.
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. However, arbitrage opportunities are often precluded because of transactions costs.
The simultaneous purchase and selling of a security in order to profit from a differential in the price. This usually takes place on different exchanges or marketplaces.
profiting from the differences in price when the same security, currency or commodity is traded on two or more markets.
The simultaneous purchase and selling of a security in order to profit from a differential in the price, usually on different exchanges or marketplaces.
The simultaneous purchase and sale of two different, but closely related, securities to take advantage of a disparity in their prices. Alternatively, the purchase and sale of the same security in different markets.Originally, most arbitrage occurred in the currency markets: arbitrageurs would buy in one market and sell in another. Nowadays, the practice applies equally to commodities, futures and stocks. For instance, if a company is dual-listed on two stock exchanges, and the prices are at variance, an arbitrageur has an opportunity to buy in one market and sell in another before the disparity is closed.
Arbitrage / buying securities in one country, currency or market, and selling in another to take advantage of price differences.
instruments that have identical characteristics and so are perfect substitutes should trade at the same price. if they do not, a risk-free profit can be generated by simultaneously selling the higher-priced asset and buying the lower priced asset. arbitrage is the identification and exploitation of such price anomalies.
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. however, arbitrage opportunities are often precluded because of transactions costs.
the simultaneous purchase and selling of a security in order to profit from a differential in the price. this usually takes place on different exchanges or marketplaces.
profiting from the differences in price when the same security, currency or commodity is traded on two or more markets.
the simultaneous purchase and selling of a security in order to profit from a differential in the price, usually on different exchanges or marketplaces.
the simultaneous purchase and sale of two different, but closely related, securities to take advantage of a disparity in their prices. alternatively, the purchase and sale of the same security in different markets.originally, most arbitrage occurred in the currency markets: arbitrageurs would buy in one market and sell in another. nowadays, the practice applies equally to commodities, futures and stocks. for instance, if a company is dual-listed on two stock exchanges, and the prices are at variance, an arbitrageur has an opportunity to buy in one market and sell in another before the disparity is closed.
