Arbitrage Profit
An arbitrage profit has two characteristics:
1. The profit is risk-free.
"Program" refers to computer programs that constantly monitor stock, futures, and options markets, giving buy and sell signals when opportunities for arbitrage profits occur or when market conditions warrant portfolio accumulation or liquidation ...
Otherwise, an investor could make an arbitrage profit by purchasing the less expensive portfolio, selling the more expensive one and holding the long-short position to expiration. Accordingly, we have the price equality: ...
Triangular arbitrage
Striking offsetting deals among three markets simultaneously to obtain an arbitrage profit.
Riskless arbitrage
The simultaneous purchase and sale of the same asset to yield a profit.
A trading strategy that involves the simultaneous trading of two similar securities in order to recognize an arbitrage profit. Also known as "basis trading" or "buying the basis." ...
Striking offsetting deals among three markets simultaneously to obtain an arbitrage profit.
Trickle down ...
Triangular arbitrage
Definition: [crh] Striking offsetting deals among three markets simultaneously to obtain an arbitrage profit.
(2) An account used by an investor in order to engage in market transactions intended to earn arbitrage profits.
On the delivery date, the arbitrageur hands over the underlying, and receives the agreed forward price.
He then repays the lender the borrowed amount plus interest.
The difference between the two amounts is the arbitrage profit.
 See also: Expense, Risk arbitrage, Takeover target, Bills, Saving
  
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