Time Arbitrage

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Dictionary Says

Definition of 'Time Arbitrage'

An opportunity created when a stock misses its mark and is sold based on a short-term outlook with little change in the long-term prospects of the company. This miss occurs when a company fails to meet earnings estimates by analysts or its guidance, resulting in a short-term stumble where the price of the stock decreases. Some investors use time arbitrage to increase their chances of outperforming the market.
Investopedia Says

Investopedia explains 'Time Arbitrage'

There are numerous examples of time arbitrage. Generally speaking, single misses do not mean a company is in trouble, and there is often a good chance of a rebound long term. However, if the misses become habitual, time arbitrage may actually be a losing proposition. Essentially, time arbitrage is another version of the old advice, "buy on bad news, sell on good."
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'Time Arbitrage'

  • How do I use an arbitrage strategy in forex trading?

    http://www.investopedia.com/ask/answers/forex/forex-arbritrage.asp
    ... One of these tools is the forex arbitrage calculator, which provides the retail
    forex trader with real time forex arbitrage opportunities. ...

  • Trading The Odds With Arbitrage

    http://www.investopedia.com/articles/trading/04/111004.asp
    ... Simply replace the takeover price with the liquidation price, and holding time with
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  • CFA Level 1 Study Guide - Derivatives - Arbitrage | Investopedia

    http://www.investopedia.com/exam-guide/cfa-level-1/derivatives/arbitrage.asp
    ... 15.12 Arbitrage; 15.13 Forward Markets and Contracts: Settlement Procedures; 15.14 ...
    15.18 Eurodollar Time Deposit Markets; 15.19 Characteristics of Forward Rate ...

  • Trade Takeover Stocks With Merger Arbitrage

    http://www.investopedia.com/articles/stocks/06/mergerarbitrage.asp
    ... Merger arbitrage (also known as "merge-arb") calls for trading the stocks of ... At the
    same time, the arbitrageur will short sell the acquiring company by ...

  • Credit Card Arbitrage: Free Money Or Dangerous Gamble?

    http://www.investopedia.com/articles/pf/09/credit-card-arbitrage.asp
    ... "People who traditionally do arbitrage well are investment professionals," notes
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  • CFA Level 1 Study Guide - Fixed Income Investments - Arbitrage ...

    http://www.investopedia.com/exam-guide/cfa-level-1/fixed-income-investments/arbitrage-free-valuation-approach.asp
    ... 15.12 Arbitrage; 15.13 Forward Markets and Contracts: Settlement Procedures; 15.14 ...
    15.18 Eurodollar Time Deposit Markets; 15.19 Characteristics of Forward Rate ...

  • Arbitrage Squeezes Profit From Market Inefficiency

    http://www.investopedia.com/articles/trading/07/statistical-arbitrage.asp
    ... of the money invested - mergers that take a long time to go through can eat into
    investors' annual returns. The key to success in risk arbitrage is determining ...

  • Top 5 All-Time Best Mutual Fund Managers

    http://www.investopedia.com/articles/mutualfund/08/top-mutual-fund-managers.asp
    ... His main investments were numerous low-risk arbitrage situations ... Most Timeless
    Investment Principles.) Estimated Return: Reports vary due to the time period in ...

  • Out-Of-The-Money Put Time Spreads

    http://www.investopedia.com/articles/optioninvestor/03/061903.asp
    ... An explosive move lower at any time before September expiration (third Friday of
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  • S&P 500 Options On Futures: Profiting From Time-Value Decay

    http://www.investopedia.com/articles/optioninvestor/02/071702.asp
    ... When the market establishes a technical bottom and rallies higher, we can at the
    right time leg into a call credit spread to ... Trading The Odds With Arbitrage. ...

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