Arbitrage trading seeks to take advantage of price discrepancies in a single security trading in two different markets to make a profit. Arbitrage trading refers to taking advantage of a price ...

The algorithm employs a general statistical arbitrage strategy based on the tendency of overvalued stocks to go back down and the undervalued ones to go up. In the 1970s, 1980s and early 1990s ...

Michael Lewis's 2014 book Flash Boys brought wider attention to how some high-frequency traders were making millions through latency arbitrage, profiting from microsecond advantages in trading speed.

Today, using low latency data, we identify large amounts of the value in the S&P 500 index trading in one microsecond ... We show how arbitrage works, in theory, in the diagram below: The futures ...