Low Risk Profile
Arbitrage trading results in profits with minimal or no market exposure since selling and buying are carried out simultaneously, capitalizing strictly on price variations. Pure arbitrage trades, therefore, are delta neutral.
Emotional Tranquility
Trading based on emotion is the number one cause of trading losses among amateur traders. Arbitrage trading takes the emotion out of trading almost entirely.
Systematic Execution
Due to its systematic nature, arbitrage investors execute only calculated trades with visible alpha, dramatically limiting the importance of intuition and reducing the likelihood of emotional trades.
