Convertible Arbitrage
An investing strategy that involves the long position on a convertible security and a short position in its converting common stock.
Investopedia Commentary
This strategy attempts to exploit profits when there is a pricing error made in the conversion factor of the convertible security.
Related Links
Trading the Odds with Arbitrage
Convertible Bonds: An Introduction
See also: Arbitrage, Common Stock, Conversion Price, Convertible, Short