See Also: Index arbitrage(finance)
Index arbitrage(money)
Money flow index (MFI)(finance)
European, Australia, and Far East index (EAFE index)(finance)
European, Australia, and Far East index (EAFE index)(money)
Tight money or dear money(finance)
Morgan Stanley Capital International World Index (MSCI World Index)(money)
Arbitrage(money)
Tax arbitrage(finance)
arbitrage(encyclopedia)

Index arbitrage (money)


Definition: [crh] An investment trading strategy that exploits divergences between actual and theoretical futures prices. An example Definition: is the simultaneous buying (selling) of stock index futures (i.e., S&P 500) while selling (buying) the underlying stocks of that index, capturing as profit the temporarily inflated basis between these two Definition: baskets. Often, the point at which profitability exists is expressed at the block call as the number of points the future must be over or Definition: under the underlying basket for an arbitrage opportunity to exist. See: Program trDefinition: ading.