Dividend Arbitrage

Business, Legal & Accounting Glossary

Definition: Dividend Arbitrage


Dividend Arbitrage


Full Definition of Dividend Arbitrage


A low risk hedge technique used by options traders to generate additional income from a short term transaction involving a high yielding dividend stock. Owning both the shares and the proportionate number of options on a dividend paying stock, the trader receives both the dividend payment and the income from the sale of the options.


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, from PayrollHeaven.com website: https://payrollheaven.com/define/dividend-arbitrage/

Definition Sources


Definitions for Dividend Arbitrage are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.