The Law Dictionary

Featuring Black’s Law Dictionary Free Online Legal Dictionary 2nd Ed.


An investment strategy involving the simultaneous purchase and sale of two ASSETS in order to capitalize on small price or rate discrepancies. The intent of the strategy is to generate a profit with a minimum amount of RISK; true arbitrage is riskfree. See also HEDGE, LONG ARBITRAGE, PURE ARBITRAGE,QUASI ARBITRAGE, SHORT ARBITRAGE, SPECULATION,YIELD ENHANCEMENT.

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