Sentences with phrase «index arbitrageurs»

Yes, index arbitrageurs were flat out selling stock in 1987, but only because of the monumental selling of S&P 500 futures.

Not exact matches

But the institutions had sold massive amounts of futures, and the index itself didn't fall nearly as far because the terrified arbitrageurs wouldn't exploit the spread.

Normally when futures were trading far enough below the index itself, the arbitrageurs sold short a basket of stocks that closely tracked the index and bought an offsetting position in the cheaper index futures.

Following our discussion, if everyone started to buy the index, mispricings would start to develop regularly, and arbitrageurs would be able to profit.

At this moment the futures and the underlying assets are extremely liquid and any disparity between an index and an underlying asset is quickly traded by arbitrageurs.