Sentences with phrase «from arbitrageurs»

Not exact matches

Essentially the arbitrageur will acquire said asset from one market.

As noted earlier, arbitrageurs obtain a twofold gain: the margin between Brazil's nearly 12 % yield on its long - term government bonds and the cost of U.S. credit (1 %), plus the foreign - exchange gain resulting from the fact that the outflow from dollars into reals has pushed up the real's exchange rate some 30 % — from R$ 2.50 at the start of 2009 to $ 1.75 last week.

Like carry trade «arbitrageurs» who thought parity was suspended just for them, these guys thought risk had become unmoored from return.

Do you mean risk in the sense that when you buy and sell mutual funds, you get the exact NAV price calculated at the end of the day; when you buy and sell ETFs you have a free market price that while it's unlikely to diverge much from the underlying NAV because arbitrageurs gonna arbitrage, it theoretically could?

Can we explain what factors are inhibiting arbitrageurs from jumping in with capital to arbitrage away the opportunity?

The reason is that you can exchange a large block of ETF shares for the underlying shares and arbitrageurs would exploit any profitable deviation from NAV.

Spreader: A commodities trader who attempts to profit from a change in price differences between commodities, futures contracts, or options contracts; a commodities arbitrageur.

ETFs do not vary much from the underlying NAV because when they do arbitrageurs step in to redeem or create ETF units, a feature not available with CEFs.

A wide gap between spot and futures prices increased inventory demand as arbitrageurs sought to profit from the difference between warehousing costs and the gap between spot and futures prices.