#ArbitrageTradingStrategy

Common types of Arbitrage strategies:

* Simple Arbitrage (Pure Arbitrage): Buying and selling the same asset on two different markets simultaneously.

* Merger Arbitrage/Risk Arbitrage: Focusing on merger and acquisition (M&A) transactions. The trader buys shares of the target company being acquired and bets on the deal's success, profiting from the price difference between the current share price and the proposed acquisition price.

* Convertible Arbitrage: Exploiting the price difference between a company's convertible bonds and its common stock.

* Triangular Arbitrage: Converting one currency to another, then to a third currency, and finally back to the original currency to exploit price differences. Commonly seen in the Forex market.

* Statistical Arbitrage/Stat Arb: Using mathematical models and statistical analysis to identify pricing inefficiencies between highly correlated assets, such as pairs trading between two stocks with similar historical volatility.

* Index Arbitrage: Buying or selling the components of an index compared to the index itself to benefit from any discrepancies relative to the index's weighting.

* Spatial Arbitrage: Involves buying an asset on one exchange or market and selling it on another exchange where the price is higher, often due to supply and demand imbalances or liquidity differences between geographic areas.