risk arbitrage - meaning and definition. What is risk arbitrage
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What (who) is risk arbitrage - definition


Risk arbitrage         
A TYPE OF EVENT-DRIVEN INVESTING IN THAT IT ATTEMPTS TO EXPLOIT PRICING INEFFICIENCIES CAUSED BY A CORPORATE EVENT
Merger arbitrage; Risk Arbitrage; Acquire-and-arbitrage; Risk-arbitrage
Risk arbitrage, also known as merger arbitrage, is an investment strategy that speculates on the successful completion of mergers and acquisitions. An investor that employs this strategy is known as an arbitrageur.
Triangular arbitrage         
  • A visual representation of a realistic triangular arbitrage scenario, using sample bid and ask prices quoted by international banks
FOREX ARBITRAGE ACROSS THREE CURRENCIES
Triangle arbitrage; Triangulation (finance); Cross currency arbitrage; Three-point arbitrage
Triangular arbitrage (also referred to as cross currency arbitrage or three-point arbitrage) is the act of exploiting an arbitrage opportunity resulting from a pricing discrepancy among three different currencies in the foreign exchange market. A triangular arbitrage strategy involves three trades, exchanging the initial currency for a second, the second currency for a third, and the third currency for the initial.
arbitrageur         
CAPITALISATION OF RISK-FREE OPPORTUNITIES IN FINANCIAL MARKETS
Arbitrage-free; Arbitrageur; Regulatory arbitrage; Arbitrage trader; P.F.D Trading; Convergence trades; Price differential; Execution risk
Examples of use of risk arbitrage
1. On the upside, Kerviel was hoping to triple his bonus from 2006 to 2007 and might well have turned himself into a star by continuing, as Nick Leeson did at Barings Bank in 1''4, to shift from low–risk arbitrage to fraudulent risk–taking.