RISKLESS TRANSACTION


Meaning of RISKLESS TRANSACTION in English

A transaction that is guaranteed a profit , such as the arbitrage of a temporary differential between commodity prices in two different markets . The evaluation of whether dealer markups and markdowns in OTC transactions are reasonable. According to NASD , markups or markdowns should not exceed 5%.

Campbell R. Harvey. Hypertextual finance English glossary.      Английский словарь гипертекстовых финансов.