List of Arbitrage Articles

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

Before getting down to understanding the advantages of arbitrage, let us spend a moment understanding arbitrage at a conceptual level.

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.

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.

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.

To understand the importance of arbitrage, it is essential to understand the law of one price which governs the price discovery in efficient markets.

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.

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 is about capitalizing on price differentials between markets while hedging is about reducing risk through offsetting positions.