Sentences with phrase «arbitrage position»

An arbitrage position can be established by taking an economically opposite position in a security futures contract on another exchange, in an options contract, or in the underlying security.

Warren Buffett wrote about RJR Nabisco as a major arbitrage position in the Berkshire Hathaway's letter to shareholders for fiscal year 1988, as follows:

The S&P 500 was down 4 % today, but my merger arbitrage position in Constellation Energy Group (CEG) was up nicely.

The foregoing position limits shall not apply to (1) bona fide hedge positions meeting the requirements of Regulation 1.3 (z)(1) of the CFTC and the rules of the Exchange, and shall not apply to arbitrage positions an inter-commodity spread positions subject to Rule 559.

It is a flexible, deep, and liquid market, permitting traders to construct interest rate positions for specific time periods in the future, and to create arbitrage positions against other credit instruments.

Not exact matches

Icahn bought positions in both companies as an arbitrage play.

The common element is that any long position taken in a specific equity is offset by a short position in either a merger partner (risk arbitrage), an «overvalued» member of the same sector (long / short paired trading), a convertible bond (convertible arbitrage), a futures contract (index arbitrage) or an option contract (volatility arbitrage).

Some invest in just bitcoin, taking both long and short positions, some buy a basket of cryptocurrencies and others exploit the arbitrage between different exchanges» prices.

Convertible arbitrage holds long positions in convertible bonds while shorting the stock of the underlying company.

Merger arbitrage funds hold a long position in target stocks while shorting the acquiring company profiting from the difference.

They also have the ability to invest beyond the equity market in «less liquid» investments, such as distressed debt, can hold short positions in merger / arbitrage situations or to hedge market risk, and are willing to hold a up to 15 % in cash.

• How to take positions in the market with a $ 5 upside and a $ 1 downside • How to make money in spin - offs • How to make money in risk arbitrage and merger securities • How call options work

If market makers can not arbitrage differences between an ETF's price and underlying value and can not effectively hedge their intraday fund positions, the ETF can not be expected to trade within a consistently narrow range of underlying value.

In ETF trading, consistently low investor trading costs can not be assured unless market makers have sufficient knowledge of portfolio holdings to enable them to effectively arbitrage differences between an ETF's market price and its underlying portfolio value and to hedge the intraday market risk they assume as they take inventory positions in connection with their market - making activities.

The common element is that any long position taken in a specific equity is offset by a short position in either a merger partner (risk arbitrage), an «overvalued» member of the same sector (long / short paired trading), a convertible bond (convertible arbitrage), a futures contract (index arbitrage) or an option contract (volatility arbitrage).

Speculators can also engage in arbitrage, which is similar to a spread except that the long and short positions occur on two different markets.

If this was an American option (SPY instead of SPX), then you could buy the option, exercise it, end up with long position in SPY and sell it immediately for a risk free profit, a.k.a arbitrage.

Advised and updated clients on arbitrage opportunities and hedging strategies on long and short positions in commodities futures.

I'll be sure to be positioned to take advantage of that arbitrage play when the cycle returns again.