Arbitrage strategies are risk-free strategies to capitalize on price discrepancies. Here we look at different types of arbitrage trading strategies and the types of arbitrage strategies.
Various assets are traded in high volume across different exchanges in India. However, due to market inefficiencies and differential demand-supply
The arbitrageur in stock market is a very critical link between asset prices and helps to equalize them across markets or at least synchronize the prices.
One of the most common activity in the stock market is arbitrage. Let us first understand what is arbitrage and the actual arbitrage definition.
Cash and carry arbitrage is a financial arbitrage strategy that involves making the best of the anomalies in pricing, or mispricing as it is called.
At a conceptual level, arbitrage is the anomalies in pricing. In the good old days of the NSE and BSE, there used be huge price differences between the two exchanges and even with the regional exchanges.
Terms like arbitrage and speculation are common place words in the market trading lexicon. As a trader in markets, it is essential to understand the arbitrage and speculation difference.
Reverse cash and carry arbitrage happens when the futures is at a discount to the spot price and is attractive even after you consider the cost of carry.
In the media or news, there are always reports about one company being merged or bought by another rival company. Mergers and acquisitions are a fundamental part of a company’s business cycle.
Before getting down to understanding the advantages of arbitrage, let us spend a moment understanding arbitrage at a conceptual level.
Arbitrage strategies are risk-free strategies to capitalize on price discrepancies. Here we look at different types of arbitrage trading strategies and the types of arbitrage strategies.
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