How risky is arbitrage?

Arbitrage is a well known low-risk trading strategy. Unlike a typical investment, arbitrage does not predict the price movement of an asset but rather capitalises on the price differences of an asset between different markets. Typically there are market risks associated with holding the asset for a period of time between buying and selling it, however, Future Forex uses a fully hedged trading system which ensures clients are not exposed to these market risks.

This fully hedged system is achieved by locking in the sell rate of the crypto asset at the same instant that it is bought. This allows Future Forex to reliably predict a client’s return on their trade at the instant it is being executed. As a result of this feature, clients are able to set a minimum targeted return, and Future Forex will only initiate a trade if this target will be met or exceeded.

Risks > How risky is arbitrage?
Return to Articles
Return to FAQ