
Introduction
Types of Financial Arbitrage Strategies
- Stock Arbitrage: involves buying and selling stocks listed on different exchanges to take advantage of price variations.
- Mutual Fund Arbitrage: involves buying and selling shares of the same mutual fund at different prices due to market inefficiencies.
- Merger Arbitrage: involves buying shares of a company that is being acquired and selling shares of the acquiring company to profit from the price differential.
- Currency Arbitrage: involves buying and selling currencies in different markets to profit from exchange rate differentials.
- Commodity Arbitrage: involves buying and selling commodities in different markets to profit from price variations caused by geographic or transportation differences.