Theoretically, a risk-free strategy where financial instruments are bought and sold simultaneously to benefit from price differences.
Arbitrage is a temporal state of market inefficiency and usually doesn't last for any long periods of time because they are detected nearly immediately by extremely clever high-frequency trading algorithms before traders can take full advantage.
Arbitrage traders keep an eye on markets for these price discrepancies in different exchanges.
This is an options trading strategy in which profit is made by arbitraging on discrepancies in options pricing. These spreads are usually four-legged and like other arbitrage opportunities are not suitable for retail traders.[click to read more]
A general term in which strategy is utilized to take advantage of option's decaying premium associated with time value, implied volatility, neutralized spreads and arbitrage opportunities with a goal to make a reasonable and consistent return on investment.[click to read more]
The fair Call and put pricing policy in prices so that the markets are not taken advantage of through price discrepancy arbitrage. Arbitrage opportunities are extremely rare as many hedge funds have extremely fast servers located in close proximity to primary exchanges [click to read more]