Uncovered interest arbitrage: Difference between revisions
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imported>Doug Williamson (Add link.) |
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== See also == | == See also == | ||
* [[Carry trade]] | |||
* [[Covered interest arbitrage]] | * [[Covered interest arbitrage]] | ||
* [[Interest arbitrage]] | |||
* [[Uncovered]] | * [[Uncovered]] | ||
* [[Uncovered arbitrage]] | * [[Uncovered arbitrage]] | ||
[[Category:Financial_products_and_markets]] | [[Category:Financial_products_and_markets]] |
Latest revision as of 14:43, 29 August 2024
A speculative activity involving the switching of funds, for example, from a lower interest rate currency into a higher interest rate currency.
It differs from Covered interest arbitrage, because no forward foreign exchange contact is transacted to cover the related foreign exchange risk.