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Types of Arbitrage

Arbitrage Betting
Arbitrage Betting

Arbitrage betting promises risk free returns - the Holy Grail of gambling - so is naturally a very popular topic within the betting community, but how does arbitrage betting work? We have laid out everything you need to know; this is arbitrage betting explained.

source: pinnacle.com
image: eprinty.de
Covered Interest Arbitrage
Covered Interest Arbitrage

Covered interest arbitrage is a strategy in which an investor uses a forward contract to hedge against exchange rate risk. Covered interest rate arbitrages the practice of using favorable interest rate differentials to invest in a higher-yielding currency, and hedging the exchange risk through a forward currency contract.

Fixed Income Arbitrage
Fixed Income Arbitrage

Fixed income arbitrage is an investment strategy that realizes small but highly leveraged profits from the mispricing of similar debt securities. Fixed income arbitrage is an investment strategy that realizes small but highly leveraged profits from the mispricing of similar debt securities.

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Political Arbitrage
Political Arbitrage

An arbitrage activity that involves trading securities based on knowledge of potential future political activity. It may be country-specific or region-specific, depending on the type of political activity envisaged.

Remarketing Arbitrage
Remarketing Arbitrage

In economics and finance, arbitrage (US: / ˈ ɑːr b ɪ t r ɑː ʒ /, UK: / ˈ ɑː b ɪ t r ɪ dʒ /, UK: / ˌ ɑː b ɪ ˈ t r ɑː ʒ /) is the practice of taking advantage of a price difference between two or more markets: striking a combination of matching deals that capitalize upon the imbalance, the profit being the difference between the market prices.

Risk Arbitrage
Risk Arbitrage

Risk arbitrage is a strategy to profit from the narrowing of a gap of the trading price of a target's stock and the acquirer's valuation of that stock.

Statistical Arbitrage
Statistical Arbitrage

Statistical arbitrage strategies are market neutral because they involve opening both a long position and short position simultaneously to take advantage of inefficient pricing in correlated securities.

Triangular Arbitrage
Triangular Arbitrage

Triangular arbitrage is the result of a discrepancy between three foreign currencies that occurs when the currency's exchange rates do not exactly match up. These opportunities are rare and traders who take advantage of them usually have advanced computer equipment and/or programs to automate the process.