Arbitrageurs have an important role in self regulation of financial markets by removing distortions: when a trade is possible, these operators benefit until it is more interesting, bringing prices to their fair value.
Although the price difference may be very small, arbitrageurs, or arbs, typically trade regularly and in huge volume, so they can make sizable profits.
If the convertible's price dipped below conversion value, arbitrageurs would snap it up, convert it and sell the common shares to make an instant profit.
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.
The presence of arbitrageurs typically causes the prices in different markets to converge: the prices in the more expensive market will tend to decline and the opposite will ensue for the cheaper market.
Spreads or straddles are usually assembled by speculators or arbitrageurs seeking to exploit inefficiency in the marketplace.
Most shares are often acquired in large blocks from arbitrageurs, frequently resulting in the exclusion of small stockholders from the offer.
In practice, the market maker price usually matches the underlying instrument as the CFD provider would otherwise be exposed to arbitrageurs, ...
Since the CME Eurodollar contract's inception, it has become one of the most versatile trading vehicles offered on the listed markets, offering numerous opportunities for hedgers and arbitrageurs.
Definition
Arbitrageur
An individual or entity who engages in arbitrage. Arbitrageurs are usually financial professionals. Also called arb.
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It was an insider trading scam which was done by the young Wall Street lawyers, bankers, and arbitrageurs. Yuppie is a term used for youth, affluence, and business success
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Futures contracts Trade in a "cost-of-carry market" where the underlying Commodity can be stored, insured, and converted into the Future easily and inexpensively. Arbitrageurs, because of the ease of Switching from the Spot commodity to futures, ...
Arbitrageur: Refers to an individual or company engaged in arbitrage. By taking advantage of momentary disparities in prices between markets, arbitrageurs lock in a profit because the selling price is higher than the buying price.
TeenAnalyst Advice: Usually when a company purchases another company, they see their stock decline slightly. The company being acquired is purchased at a premium, so their stock usually appreciates. Risk arbitrageurs are people who try to profit ...
Essentially what arbitragers do is to make a risk-free profit at the expense of the spread betting bookmaker; and for this reason spread bookies are not fond of arbitragers (arbitrageurs in english).
transactions in the securities markets involve high speed and low risk. At some moment a price difference exists, and the problem is to execute two or three balancing transactions while the difference persists (that is, before the other arbitrageurs ...
if stocks are temporarily cheaper than futures, an arbitrageur will buy stocks and sell futures to capture a profit on the difference, or spread, between the two prices. By taking advantage of momentary disparities between markets, arbitrageurs ...
of stock-index futures, options on individual stocks, and stock-index options. The markets tend to be volatile on those days (the third Friday in March, June, September, and December) as there may be massive trades by hedge strategists, arbitrageurs ...
At some moment a price difference exists, and the problem is to execute two or three balancing transactions while the difference persists (that is, before the other arbitrageurs act).
that there is not a single exchange rate but rather a number of different rates, depending on what bank or market maker is trading, and where it is. In practice the rates are often very close, otherwise they could be exploited by arbitrageurs ...
Friday of March, June, September, and December, when stock options, futures on stock indexes, and options on these futures expire concurrently. Massive trades in index futures, options, and underlying stock by hedge strategists and arbitrageurs cause ...
Usually, the central bank of a fixed currency will change its interest rate policy on the same day, and in the same percentage value of the controlling central bank. If they had not done so, arbitrageurs in the market would quickly exploit the ...
[Harvey] arbitrageurs People who search for and exploit arbitrage opportunities. [Harvey] arbitration A low-cost alternative to settling disputes over securities transactions in the court system. The NYSE administers this service.
 See also: Arbitrage, Market, Trading, Stock, Investment
  
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