Main features

by strategy

Pairs trading

Term structure arbitrage

Volatility arbitrage

Swap spread arbitrage

Mortgage arbitrage

Capital structure arbitrage

Relative value

Yes

Yes

Yes

Yes

Yes

Yes

Mean reversion

Yes

Yes

-

No

No

-

Market neutral

-

-

-

-

-

-

Zero cost

-

-

-

Yes

No

-

Expected positive

excess return

Yes

Yes

Yes

Yes

Yes

Yes

Acceptably small

potential loss

Yes

Yes

Yes

Yes

Yes

Yes

Take profit

Yes

Yes

Yes

Yes

Yes

Yes

Stop loss

Yes

Yes

Yes

Yes

Yes

Yes