Arbitrage

Unlock the secrets of forward interest rates with the Heath-Jarrow-Morton (HJM) Model. Dive into how this advanced model shapes interest-rate-sensitive securities pricing and its application in financial derivatives.

Unlock the complexities of multi-leg trade strategies to enhance your trading prowess. Learn about legs in trading, including variations and specific examples.

Discover the financial strategy of cash-and-carry arbitrage, designed to exploit price inefficiencies in the market for riskless gains.

Learn about contango, why it occurs in futures markets, its impacts on investments, and strategies to profit from this market condition.

Explore the gripping journey of Long-Term Capital Management, a hedge fund led by Nobel Prize-winning economists and prominent Wall Street traders, and its catastrophic failure that led to a market bailout.

Explore the phenomenon of the Kimchi Premium, its historical context, and its implications on Bitcoin and cryptocurrency trading in South Korea.

Explore the fundamental concept of wide basis in futures markets, where discrepancies between spot prices and futures prices provide insights into supply-demand dynamics, market liquidity, and arbitrage opportunities.

Discover how Asset Swapped Convertible Option Transactions separate convertible bonds into their fixed-income and equity components, optimizing investment strategies. Learn how ASCOTs work, their key benefits, and their role in convertible arbitrage.

Discover how to identify and exploit exchange rate discrepancies with triangular arbitrage through algorithmic trading, turning fleeting opportunities into profitable trades.

Discover the intricacies of the box spread options strategy – a sophisticated approach to options arbitrage that can offer favorable implied interest rates and cash management solutions.

Delve into the concept of covered interest rate parity, understand its significance, formula, comparison with uncovered interest rate parity, its implications, limitations, and examples.

Discover how arbitrageurs profit from market inefficiencies through sophisticated strategies including merger and global equity arbitrage.

Dive deep into the world of options trading by understanding put-call parity, a fundamental principle that defines the relationship between put and call options of the same asset class.

Discover the intricacies of arbitrage trading—a technique that exploits market inefficiencies for risk-free profit, providing vital liquidity and efficiency in the financial markets.