Index Arbitrage
Index Arbitrage is a particular type of Program Trading which attempts to profit from price discrepancies between the basket of stocks which make up a stock index and its derivatives (such as the future based on that index). As of July 2012, it makes up less than 5% of the active Program Trading volume on the NYSE daily.
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“Exile as a mode of genius no longer exists; in place of Joyce we have the fragments of work appearing in Index on Censorship.”
—Nadine Gordimer (b. 1923)