#ArbitrageTradingStrategy Arbitrage trading strategies are a class of trading strategies that involve buying and selling financial instruments to take advantage of price discrepancies. The goal of arbitrage trading is to make a profit from the differences in prices between securities or markets, without taking on significant directional risk. Arbitrage trading strategies typically rely on quantitative analysis and mathematical models to identify mispricing and execute trades quickly before the market adjusts. In this article, we will introduce five popular arbitrage trading strategies and provide a simple example and reference materials for each strategy.Arbitrage is one alternative investment strategy that can prove exceptionally profitable when leveraged by a sophisticated investor. It also carries risks you must consider. To effectively include arbitrage in your alternative investment strategy, it’s critical to understand the nuances and risks involved.
Here's an overview of arbitrage, including a look at three types you should know: pure arbitrage, merger arbitrage, and convertible arbitrage.