Forex arbitrage entails the concurrent buying and selling of a security in separate markets while following a profit.
You acquire a currency with a high-interest rate against one with a low rate. Provided your trade remains positive, the broker pays you the interest variation of both currencies for every day you maintain the trade.
It features the purchase and disposal of options sharing strike prices and a primary stock but differing in their expirations. For long calendar spreads, you offload a short-lived option and acquire one with a longer term. Short calendar spreads, however, involve purchasing a near-term and unloading a long-term option.
Reverse Carry Trades
It merges an asset’s short position with its underlying futures contract’s long position. You can enter a position by selling your stocks and simultaneously acquiring an equal futures amount from the same underlying asset. The short-sale earnings should surpass the cost of your futures contract