#TradingPairs101

WHAT IS PAIRS TRADING?

A strategy that involves buying an undervalued stock and selling an overvalued one. This strategy is considered "market neutral" and is designed to generate profits in both bullish and bearish markets. Investors are attracted to market-neutral strategies due to the potential for consistent returns without taking on significant risks. Additionally, it offers a very low correlation with the overall market.

PairsTrading101.com is an effective resource that provides educational materials and premium services for investors interested in pairs trading.

Pairs trading offers unique advantages and presents certain challenges. It is important to weigh these pros and cons to understand how pairs trading could fit into your overall investment strategy. Below are the main advantages and disadvantages: