Unlike typical equity funds and hybrid funds, arbitrage funds create returns through the purchase and sale of securities in different markets to get the benefit of price mismatch.
Arbitrage funds create returns through the purchase and sale of securities in diverse markets to avail the benefit of price mismatch. Arbitrage refers to the opportunity of taking advantage between the price difference between two different markets for that same stock, commodity and derivative. Arbitrage is also an opportunity to lend securities to the market and earn revenues. Arbitrageur is the person who conducts and takes advantage of arbitrage in stocks, commodities, interest rate bonds, derivatives and currency futures.
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