Arbitrage

Abstract

An arbitrage opportunity is an investment strategy that gurantees a positive payoff in some contingency with no possibility of a negative payoff and with no net investment. By assumption, it is possible to run the arbitrage possibility at arbitrary scale; in other words, an arbitrage opportunity represents a money pump. A simple example of arbitrage is the opportunity to borrow and lend costlessly at two different fixed rates of interest. Such a disparity between the two rates cannot persist: arbitrageurs will drive the rate together. These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Cite this work

No public copy is stored for this record, so only the metadata is cited.

Stored only when both papers are in the corpus — 18 citations exist upstream.

Papers that cite the same references — the relational fallback while embeddings are still backfilling.