Arbitrage

Arbitrage (, ) is the practice of taking advantage of a difference in prices in two or more marketsstriking a combination of matching deals to capitalize on the difference, the profit being the difference between the market prices at which the unit is traded. Arbitrage has the effect of causing prices of the same or very similar assets in different markets to converge.

situation when futures prices are below the expected spot price at maturity

economic theory

multi-factor asset pricing model that relates macroeconomic risk variables to the pricing of financial assets

thumb|upright=1.5|This graph depicts how the price of a single forward contract will typically behave through time in relation to the expected future price at any point in time. A futures contract in contango will normally decrease in value until it equals the spot price of the underlying commodity at maturity. This graph does not show the [[forward curve (which plots against maturities on the horizontal).]]

in financial mathematics, defines a relationship between the price of a European call option and a European put option

term

forex arbitrage across three currencies

bets taking advantage of differing odds

foreign exchange market