Uncovered interest arbitrage: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Administrator (CSV import) |
imported>Doug Williamson (Add link.) |
||
| (2 intermediate revisions by the same user not shown) | |||
| Line 1: | Line 1: | ||
A speculative activity involving the switching of funds, for example, from a lower interest rate currency into a higher interest rate currency. | 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. | |||
== See also == | == See also == | ||
* [[Covered interest arbitrage]] | * [[Covered interest arbitrage]] | ||
* [[Uncovered]] | * [[Uncovered]] | ||
* [[Uncovered arbitrage]] | |||
[[Category:Financial_products_and_markets]] | |||
Latest revision as of 08:46, 19 October 2022
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.
