#ArbitrageTradingStrategy Share :

Financial markets are not always efficient, and prices for the same asset can vary from one segment of the market to another for brief moments. Arbitrage trading aims to capitalise on these discrepancies, with investors buying low in one market and selling high in another in pursuit of a profit.

Although arbitrage opportunities are typically brief, skilled traders who can identify, and act swiftly can potentially lock in gains. In India’s robust trading ecosystem—spanning equities, futures, options, and even currency pairs— arbitrage strategies offer a way to explore potential near-term gains without speculating on future price movements, instead capitalizing on existing momentary inefficiencies in the market. But while downside risk may not typically high, significant market knowledge and swiftness are needed to identify and execute arbitrage opportunities.