Arbitrageur: One who profits from the differences in price when the same, or extremely similar, security, currency, or commodity is traded on two or more markets. The Arbitrageur profits by simultaneously purchasing and selling these securities to take advantage of pricing differentials (spreads) created by market conditions. See: Risk arbitrage, convertible arbitrage, index arbitrage, and international arbitrage.

 

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Arbitrageur: One who profits from the differences in price when the same, or extremely similar, security, currency, or commodity is traded on two or more markets. The Arbitrageur profits by simultaneousl . . . View Full Definition

Trough: An elongated area of low atmospheric pressure that is associated with an area of minimum cyclonic circulation. The opposite of a ridge.

Reversal: Turn, unwind. For convertible reversal, selling a convertible and buying the underlying common, usually effected by an arbitrageur. For market reversal, change in direction in the stock or c . . . View Full Definition

Cost-Plus Contract: Applies to derivative products. Futures contracts trade in a 'cost-of-carry market' where the underlying commodity can be stored, insured, and converted into the future easily and inexpensiv . . . View Full Definition