The Law Dictionary

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

SHORT ARBITRAGE Definition & Legal Meaning

Definition & Citations:

When the futures rate is lower than the forward rate. This means the cash market is underpriced and the asset is bought while selling the futures. Refer to long arbitrage.

Disclaimer

This article contains general legal information but does not constitute professional legal advice for your particular situation. The Law Dictionary is not a law firm, and this page does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.