The purchase of one futures contract and the sale of another, mainly on commodity exchanges, with the aim of making a profit from price differences between the two contracts. – Such arbitrage transactions may relate to contracts on one’s own exchange (intra-market transaction), but also to price differences on different exchanges (inter-market transaction). Arbitrageurs thus ensure that the market conditions for the contracts are aligned. – See arbitrage, butterfly spread, commodity fund, contract for difference, event-driven fund, index arbitrage, commodity futures contract, speculation, futures speculator, value fund.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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