Business / Finance / Arbitrage: The simultaneous buying and selling of a security at two different prices in two different markets, resulting in profits without risk. Perfectly efficient markets present no arbitrage opportunities. Perfectly efficient markets seldom exist, but, arbitrage opportunities are often precluded because of transactions costs.
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Business / Finance / 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 purchasi MORE
Business / Finance / Risk Controlled Arbitrage: A self-funding, self-hedged series of transactions that generally use mortgage securities (MBS) as the primary assets. MORE