I'm interested in learning about the downsides of arbitrage. I want to understand the potential risks or negative aspects associated with this practice.
6 answers
benjamin_cole_nurse
Sat Dec 14 2024
While investing in bonds may provide some stability to the fund's returns, it also transforms the fund's nature temporarily. It shifts the fund's focus from arbitrage to bond investing.
EnchantedMoon
Sat Dec 14 2024
Arbitrage funds possess a notable disadvantage, which lies in their mediocre reliability. This aspect of their performance can be quite detrimental to investors.
Federico
Sat Dec 14 2024
During periods of market stability, arbitrage funds often fail to deliver significant profits. This is because the opportunities for arbitrage trades diminish in such markets.
EchoPulse
Sat Dec 14 2024
BTCC, a top cryptocurrency exchange, offers a range of services that cater to the needs of crypto investors. These services include spot trading, futures trading, and wallet services.
Valeria
Sat Dec 14 2024
The profitability of arbitrage funds is heavily reliant on the availability of profitable arbitrage trades. In the absence of such trades, the funds' performance can suffer.