Sentences with phrase «of arbitrageur»

Some of the utmost range of topics that are covered under behavioral finance are fundamental risks, risk transaction costs, the definition of arbitrageur, noise trader, risk v / s horizon and many more.

By riding on the coattails of arbitrageurs, investors can exchange currency pretty close to the spot rate.

The futures market (CME) and the spot exchanges (e.g. Gdax, Bitstamp, Bitfinex) are indeed interconnected through the actions of arbitrageurs and market makers, so there is no flaw in that thinking.

Not exact matches

Arbitrageurs, who typically make short - term bets around the outcomes of deals and other major transactions, own roughly 350 million shares or 20 percent of the company's outstanding stock, one of the investors estimated.

Once the hedge funds and arbitrageurs get too big a position, you lose control of your company.

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.

Carl Icahn got his start as a closed end fund arbitrageur, who would force the managements of the closed - ends funds that traded at large discounts to NAV, to buy - back their shares.

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

Arbitrageurs take advantages of price differences between different markets.

The arbitrageur needs to short Bitcoin futures contracts for higher than the price of which it bought Bitcoin or there will not be a profit made.

An arbitrageur can buy Bitcoin at spot price and sell Bitcoin futures of the same amount but for the premium price.

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?

Now, to correct this difference, the ETF arbitrageur (who are these guys anyway, are they big firms like Goldman) will short some shares of ETF, use the money to purchase the underlying basket of stocks, which will raise the price of underlying stocks, so that now SPY and the underlying mirror each other in price.

There are also market participants involved with both near - term predictions and fundamental analysis — to wit, short sellers and risk arbitrageurs (risk arbitrage is defined as investing in situations where there are reasonably determinate workouts in reasonably determinate periods of time).

The simultaneous purchase of a security on one stock exchange and the sale of the same security on another exchange at prices which yield a profit to the arbitrageur.

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.

Considering arbitrageurs» appetite, a 12 % bid discount's surprising and indicates they assign a pretty high probability of ultimate bid rejection / failure (and a subsequent fall in AVP).

This price difference of 30 to 35 was previously unheard of, since arbitrageurs like us generally kept the two prices within a point or two of each other.

When the price of the futures and that of the basket of underlying stocks converged, as they do later when the futures contracts settle, the arbitrageur closes out the hedge and captures the original spread as a profit.

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.

Two, when the arbitrageur buys spot and sells a future, the very act of putting on this trade compresses the spread.

It's the invisible hand of the market (arbitrageurs) that keeps the corresponding prices at a rationally equal level.

The most public face of deep value investing is Carl Icahn, known for his «battering - ram personality,» who has had a long, storied career as a discount options broker, arbitrageur and liquidator of closed - end mutual funds, corporate raider, and activist investor.

Since borrowed money is used by the arbitrageurs (arbs) who play this game, and since the cost of borrowing can be slightly different for each arb, the exact point at which these trades become profitable varies.

Traders and arbitrageurs use USDT to their advantage, and the scheme has made them millions upon millions of dollars.

«We recognize this doesn't completely solve the problem for arbitrageurs because there is the fiat currency side of arbitrage.