Inward arbitrage

Inward arbitrage is the act of restructuring a firm's cash reserves by borrowing and depositing back the borrowed money at a much higher interest rate. The institution or bank profits from the difference between the interbank market interest rate and the higher interest rate of the deposited funds.

Stocks | Forex | Options | Economics | Bonds | History | Language learning | Technology | Technical Analysis | Fundamental Analysis
Copyright © 2014 econtrader | Risk disclosure | Terms of Use