Taking an equal and opposite position at the same time to benefit from small price differences between related markets.
Arbitrage
Related Terms
-
Triangular arbitrage is the process that ensures that all exchange rates are mutually consistent. For example, one U.S. dollar exchanges for one Australian dollar, and one Australian dollar...
-
The Commitment of Traders (COT) report is a weekly publication that shows the aggregate holdings of different participants in the U.S. futures market. Each Friday, the CFTC (US Commodity Futures...
-
Forex stands for “foreign exchange” and refers to the buying or selling of one currency in exchange for another. While it is called “foreign” exchange, this is just a relative term. The terms...
-
Secured Overnight Financing Rate (SOFR) is the secured overnight funding rate in USD. It is a rate published by the New York federal reserve based upon secured overnight transactions in the repo...
-
Forex trading is the simultaneous buying of one currency and selling another. When you trade in the forex market, you buy or sell in currency pairs. As the value of one currency rises or falls...