Covered arbitrage

1. Markets - pricing - foreign exchange - interest rates.

Abbreviation for covered interest arbitrage, simultaneously borrowing and depositing in two different currencies and dealing a forward foreign exchange contract between the same currency pair to cover the related foreign exchange exposure.

2. Markets - pricing.

Similar activities with other assets and markets.

See also

• Arbitrage
• Covered interest arbitrage
• Covered position
• Currency
• Exposure
• Foreign exchange
• Foreign exchange risk
• Forward foreign exchange contract
• Interest rate
• Market
• Price
• Uncovered arbitrage