Arbitrage vs. Hedging
Arbitragenoun
(finance) A market activity in which a security, commodity, currency or other tradable item is bought in one market and sold simultaneously in another, in order to profit from price differences between the markets.
Arbitragenoun
(archaic) arbitration
Arbitrageverb
To employ arbitrage
Arbitrageverb
To engage in arbitrage in, between, or among
Arbitragenoun
Judgment by an arbiter; authoritative determination.
Arbitragenoun
A traffic in bills of exchange (see Arbitration of Exchange).
Arbitragenoun
the simultaneous or near simultaneous purchase and sale of the same or closely linked securities or commodities in different markets to make a profit on the (often small) differences in price.
Arbitragenoun
a kind of hedged investment meant to capture slight differences in price; when there is a difference in the price of something on two different markets the arbitrageur simultaneously buys at the lower price and sells at the higher price
Arbitrageverb
practice arbitrage, as in the stock market
Arbitragenoun
the simultaneous buying and selling of securities, currency, or commodities in different markets or in derivative forms in order to take advantage of differing prices for the same asset
Arbitrageverb
buy and sell assets using arbitrage
Arbitrage
In economics and finance, arbitrage (, UK also ) is the practice of taking advantage of a price difference between two or more markets: striking a combination of matching deals that capitalize upon the imbalance, the profit being the difference between the market prices at which the unit is traded. When used by academics, an arbitrage is a transaction that involves no negative cash flow at any probabilistic or temporal state and a positive cash flow in at least one state; in simple terms, it is the possibility of a risk-free profit after transaction costs.
Hedgingnoun
The act of one who hedges (in various senses)
Hedgingnoun
Any plant used to form a hedge
Hedgingnoun
The use of intentionally ambiguous statements
Hedgingnoun
any technique designed to reduce or eliminate financial risk; for example, taking two positions that will offset each other if prices change
Hedgingnoun
an intentionally noncommittal or ambiguous statement;
