Exchange Currency

interest arbitrage

A transaction involving the simultaneous purchase of interest-bearing notes on different exchanges to exploit a temporary disparity in rates. Transactions often involve the trading of currencies from two different countries in which the trader must assume the risks associated with the exchange of foreign currencies.

Related information about interest arbitrage:
  1. Covered interest arbitrage - Wikipedia, the free encyclopedia
    Covered interest arbitrage is an arbitrage trading strategy whereby an investor capitalizes on the interest rate differential between two countries by using a ...
     
  2. Uncovered interest arbitrage - Wikipedia, the free encyclopedia
    Uncovered interest arbitrage is an arbitrage trading strategy whereby an investor capitalizes on the interest rate differential between two countries.
     
  3. What is interest arbitrage? definition and meaning
    Definition of interest arbitrage: A transaction involving the simultaneous purchase of interest-bearing notes on different exchanges to exploit a temporary ...
     
  4. Uncovered Interest Arbitrage Definition | Investopedia
    A form of arbitrage that involves switching from a domestic currency that carries a lower interest rate to a foreign currency that offers a higher rate of interest on ...
     
  5. Uncovered interest arbitrage
    Uncovered interest arbitrage is a similar strategy to covered interest arbitrage. The difference is that the currency risk is not hedged, so it is not a true arbitrage ...
     
  6. Covered interest arbitrage
    Covered interest arbitrage is a trade in a foreign currency fixed interest security ( usually a government bond) together with a matching forward agreement to ...
     
  7. Interest Arbitrage - Definition of Interest Arbitrage - QFINANCE
    Definition of interest arbitrage from QFinance - The Ultimate Financial Resource. What is interest arbitrage? Definitions and meanings of interest arbitrage.
     
  8. interest arbitrage noun - definition in Business English Dictionary ...
    interest arbitrage noun - definition, audio pronunciation and more for interest arbitrage noun: a method of making a profit by buying currency in one place and ...