-
The simultaneous purchase (sale) of stock index futures and the sale (purchase) of some or all of the component stocks which make up the particular stock index to profit from sufficiently large intermarket spreads between the futures contract and the index itself.
http://www.nfa.futures.org/basicnet/glossary.aspx
-
A trading technique in which baskets of stocks and stock futures contracts are bought and/or sold according to their conformity and deviation from a stock index. To keep the position fully hedged, the stocks are bought and the futures are usually sold and vice versa. In doing this, the arbitrageur is locking in a profit (or loss).
http://www.environmentalinvestors.com/glossary/ilInInd.htm
-
An investment strategy that exploits divergences between actual futures prices and their theoretically correct prices in order to make a profit.
http://https://www.shareanalysis.com/asp/glossary.asp
-
Trading in order to profit by temporary differences between the value of stocks in an index and the price of the future contract for a derivative index.
http://www.wrhambrecht.com/ind/account/tools/glossary/glossary_ghi.html
-
Buying or selling baskets of stocks while at the same time executing offsetting trades in stock-index futures. For example, if stocks are temporarily cheaper than futures, an arbitrageur will buy stocks and sell futures to capture a profit on the difference or spread between the two prices.
http://www.citibank.com/corpbank/securities/glossaryi.jsp
|
|
|