I’ve just stumbled upon hedge arbitrage trading and my mind is blown! I’m fascinated by how it aims to exploit price discrepancies between related assets to theoretically lock in profits with limited risk. Has anyone here successfully applied this strategy, or even dabbled in it? I’m trying to figure out the nuts and bolts—like which typical market situations are ideal, what kind of speed or execution some platforms offer, and what the real risks are when markets become super volatile.
Also, I’m curious about how you guys manage the hedge side of the trade. Do you stick to simple pairs, or have you tried more complex setups? Any insights on balancing hedge effectiveness with transaction costs would be awesome too. Really eager to hear your experiences and any tips you might have for someone just starting out. Let’s geek out over this—what’s been your best or worst hedge arbitrage play?