Sentences with phrase «arbitrage profit»

"Arbitrage profit" refers to the financial gain made by taking advantage of price differences in different markets. It involves buying a product or asset at a lower price in one market and selling it at a higher price in another market, thereby profiting from the price discrepancy. Full definition
As I pointed out, if the futures price falls by enough relative to the spot price it will lead to a situation where there is an essentially risk - free arbitrage profit to be made by selling the physical and buying the futures.
More specifically, it is trying to arbitrage the profit between Bitfinex and Coinbase.
The U.S. skims a stupendous arbitrage profit from creating dollars and exporting them in exchange for real goods.
I take all the leveraged buyouts, Milken, the de-industrialization, as the cost arbitrage profit taking engineered by these people.
Due to the different client bases that BitMEX (retail), and the CME (professional investors) serve, the price discrepancies between two futures contracts with the same underlying will present enormous opportunities to generate arbitrage profits.
If not, there would be a risk - free arbitrage profit to be had.
More specifically, it is trying to arbitrage the profit between Bitfinex and Coinbase.
As long as an asset of equal market value is exchanged by the monetary authority when issuing or redeeming its currency, the market will have an arbitrage profit incentive to keep the supply of money appropriate for its official value.
Efficient market theory makes several forecasts, some of which are borne out in practice, such as it is hard to earn speculative profits, and there is little or no opportunity for risk - free arbitrage profit.
In other words, if one does not account for Rho, a clever trader would be able to earn a riskless, arbitrage profit.
Anyways arbitrage profit is very difficult to garner nowadays, considering the super computers at work in the market who exploit these discrepancies, the moment they see them and bring the security right to the zero arbitrage profit point.
So even if any such instance occurs, either people will exploit it to make the arbitrage profit zero (security reflects the equilibrium price) or the profit from such transaction is so less, compared with the effort involved, that people will tend to ignore it.
In that state, near prices become higher than far (i.e., future) prices because consumers prefer to have the product sooner rather than later (see convenience yield), and because there are few holders who can make an arbitrage profit by selling the spot and buying back the future.
This should help drive the ETF's share price back toward fair value, while the AP earns a basically risk - free arbitrage profit.
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