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  2. Covered interest arbitrage - Wikipedia

    en.wikipedia.org/wiki/Covered_interest_arbitrage

    For example, as per the chart at right consider that an investor with US$5,000,000 is considering whether to invest abroad using a covered interest arbitrage strategy or to invest domestically. The dollar deposit interest rate is 3.4% in the United States , while the euro deposit rate is 4.6% in the euro area .

  3. Interest rate parity - Wikipedia

    en.wikipedia.org/wiki/Interest_rate_parity

    Interest rate parity is a no-arbitrage condition representing an equilibrium state under which investors compare interest rates available on bank deposits in two countries. [1] The fact that this condition does not always hold allows for potential opportunities to earn riskless profits from covered interest arbitrage .

  4. Arbitrage - Wikipedia

    en.wikipedia.org/wiki/Arbitrage

    "Arbitrage" is a French word and denotes a decision by an arbitrator or arbitration tribunal (in modern French, "arbitre" usually means referee or umpire).It was first defined as a financial term in 1704 by French mathemetician Mathieu de la Porte in his treatise "La science des négociants et teneurs de livres" as a consideration of different exchange rates to recognise the most profitable ...

  5. Uncovered interest arbitrage - Wikipedia

    en.wikipedia.org/wiki/Uncovered_interest_arbitrage

    For example, consider that an investor with US$5,000,000 is considering whether to invest abroad using an uncovered interest arbitrage strategy or to invest domestically. The dollar deposit interest rate is 3.4% in the United States, while the euro deposit rate is 4.6% in the euro area. The current spot exchange rate is 1.2730 $/€.

  6. Hedge (finance) - Wikipedia

    en.wikipedia.org/wiki/Hedge_(finance)

    Interest rate parity and Covered interest arbitrage: The simple concept that two similar investments in two different currencies ought to yield the same return. If the two similar investments are not at face value offering the same interest rate return, the difference should conceptually be made up by changes in the exchange rate over the life ...

  7. Trump tariffs have JPMorgan flying gold from London to New ...

    www.aol.com/finance/trump-tariffs-jpmorgan...

    JPMorgan and HSBC are the biggest names flying bullion from London to New York to cover losses on short positions—and taking advantage of an arbitrage opportunity only big institutions can access.

  8. Your Social Security Checks Will Go the Furthest in These 10 ...

    www.aol.com/social-security-checks-furthest-10...

    Image source: Getty Images. The 10 states where Social Security checks cover the most. To determine how far Social Security goes in each state, I compared the average annual benefit in each state ...

  9. Triangular arbitrage - Wikipedia

    en.wikipedia.org/wiki/Triangular_arbitrage

    Triangular arbitrage opportunities may only exist when a bank's quoted exchange rate is not equal to the market's implicit cross exchange rate. The following equation represents the calculation of an implicit cross exchange rate, the exchange rate one would expect in the market as implied from the ratio of two currencies other than the base currency.