Arbitrage


 
 

In economics, arbitrage is the practice of taking advantage of a state of imbalance between two or more markets: a combination of matching deals are struck that exploit the imbalance, the profit being the difference between the market prices. A person who engages in arbitrage is called an arbitrageur. The term is mainly applied to trading in financial instruments, such as bonds, stocks, derivatives and currencies

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Statistical arbitrage is an imbalance in expected values. A casino usually has a statistical arbitrage in every game of chance played, even though it could lose money on any single game.

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Economics: Economics (from the Greek οίκος , 'house', and νομος , 'rule', hence "household management") is a social science that studies the production, distribution, trade and consumption of goods and services. Economics is said to be positive when it tries...

Market: In general parlance, a market is a location where those willing to pay a price for something meet those willing to sell it. In marketing, a market is the sum total of potential buyers of a product....

Market price: Market price is an economic concept with commonplace familiarity; it is the price that a good or service is offered at, or will fetch, in the marketplace; it is of interest mainly in the study of microeconomics....

~ Table of Content ~

Introduction
Conditions for arbitrage
Price convergence
Risks
See also
External links
 
FR: Arbitrage


 

~ Related Subjects ~

Goods (1) - Positive (1) - Consumption (1) - Distribution (1) - Trade (1) - Marketing (1) - Product (1) - Normative (1) - Assumption (1) - Observation (1) - Production (1) - Financial instrument (1) - Bond (1) - Market price (1) - Economics (1) -
 

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