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.
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.
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.
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.
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.