==Mechanics of triangular arbitrage== Some international banks serve as market makers between currencies by narrowing their bid-ask spread more than the bid-ask spread of the implicit cross exchange rate. However, the bid and ask prices of the implicit cross exchange rate naturally discipline market makers. When banks` quoted exchange rates move ....
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http://en.wikipedia.org/wiki/Triangular_arbitrage
Arbitrage among three currencies. For example (letting x/y be the currency x per unit of currency y exchange rate), if $/Â¥ > ($/£)(£/Â¥), then an arbitrager can make a profit buying £ with $; buying Â¥ with those £; and then selling those Â¥ for $.
Found on
http://www-personal.umich.edu/~alandear/glossary/
Striking offsetting deals among three markets simultaneously to obtain an arbitrage profit.
Found on
http://www.duke.edu/~charvey/Classes/wpg/bfglost.htm
Striking offsetting deals among three markets simultaneously to obtain an arbitrage profit.
Found on
http://www.encyclo.co.uk/local/20047
A measure of the excess return per unit of risk, where excess return is defined as the difference be
Found on
http://www.encyclo.co.uk/local/22402
No exact match found.
