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If you are a currency speculator, then one leg of your locational arbitrage transaction would involve:

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Answer: currency speculator - Investment & Finance Definition

A person who trades currencies with the sole purpose of making a profit.

Explanation: : Locational arbitrage can occur when the spot rate of a given currency varies among other currencies that are involved, the excess profit from covered interest arbitrage must more than offset.

A good example of Locational Arbitrage could involve the following - include risk arbitrage, retail arbitrage, convertible arbitrage, negative arbitrage and statistical arbitrage.

Risk arbitrage – This type of arbitrage is also called merger arbitrage, as it involves the buying of stocks in the process of a merger & acquisition

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