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Riskless transaction

The financial definition for Riskless transaction:

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%.




Similar Matches

Cash transaction

Cash transaction
A transaction in which exchange is immediate in the form of cash, unlike a forward contract (which calls for future delivery of an asset at an agreed-upon price).


Closing transaction

Closing transaction
Applies to derivative products. Buy or sell transaction that eliminates an existing position (selling a long option or buying back a short option). Antithesis of opening transaction.


COD transaction

COD transaction
See: Delivery versus payment


Further Suggestions

Federal intrafund transactions
Forward exchange transaction
Highly leveraged transaction (HLT)
Intercompany transaction
Interfund transactions
Intrabudgetary transactions
Net sales transaction


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Riskless transaction
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