Arbitrage Financial Glossary
What is it? This is the process of buying securities at a low price in one market and simultaneously selling them in another market at a higher price to make a profit.Finance Term Definition Added By: Cooper
The Arbitrage definition has been viewed 3490 Time(s)!
Send To Friends!
If you'd like to send the Arbitrage definition to yourself or to your friends/colleagues, just enter the e-mail addresses in the boxes below -We hope you now understand the meaning of Arbitrage. If you need any more information on this term, please don't hesitate to contact us.
Other Similar Finance Terms:
Financial Term Lloyds TSB Commercial Finance is ...provides factoring services to more clients than anyone else in the UK.Financial Term derivatives is (1) Financial instruments whose value depends upon the values of underlying assets, interest rates, currency exchange rates, or indexes. Various authorities define derivative instruments in broad, inclusive terms or narrow, exclusive terms. It is a common misconception that all derivatives are high-risk, speculative instruments. Large financial institutions use derivatives for hedging. Options, futures, swaps, and swaptions are common derivatives used for hedging purposes. All CMOs are derivatives. There are many derivative instruments, and new ones are developed often.(2) In FAS 133, FASB defines derivatives narrowly. With some exceptions, FAS 133 defines a derivative instrument to be any financial instrument or other contract that has all three of the following characteristicsA. The financial instrument or contract has both1. One or more underlyings.2. One or more notional amounts or payment provisions or both. B. The financial instrument or contract either does not require an initial investment or requires an initial net investment that is smaller than the amount that would be required for other types of contracts that would be expected to have a similar response to changes in market factors.C. The terms of the financial instrument or contract either 1. Require or permit net settlement. 2.Provide that the contract can be readily settled net by a means outside the contract. 3.Provide for delivery or an asset that puts the recipient in a position not substantially different from net settlement. Mainly as a result of FASBs second requirement, financial instruments such as CMOs and structured notes that are commonly called derivatives are not derivatives as defined by FASB
Financial Term Encryption is The process of encoding data to prevent other people from reading or accessing confidential information online (see Secure Socket Layer).
Financial Term parallel yield curve shift is A change in interest rates that affects all of the different maturities for an instrument by the same amount. For example, if there was a parallel shift in U. S. Treasury rates in the amount of a 25 basis point increase, every maturity from 30 days to 30 years would rise by 25 basis points. The new yield curve, or graphical depiction of the term structure of interest rates, would be 25 basis points above the old yield curve at all points.
Financial Term Order of listing is The contributing forecasts are listed in date order, with the most recent forecast shown last. The table has room for a maximum of 16 brokers, and if this is insufficient the oldest forecasts are not shown.