Uncovered interest arbitrage: Difference between revisions
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imported>Administrator (CSV import) |
imported>Doug Williamson (Layout.) |
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(It differs from Covered interest arbitrage, because no forward foreign exchange contact is transacted to cover the related foreign exchange risk.) | (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]] | ||
Revision as of 12:07, 22 June 2016
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.)
