Trading Talk

Oil Arbitrage and Automated Trading Continued

Hi Traders,

In this episode of Trading Talks, Senior Trader Matt will continue from the previous Episode ‘Oil Arbitrage and Automated Trading’ and will take a further look at arbitrage opportunities in the crude oil markets. 

Specifically, we will explore how to take advantage of the times when Crude and Brent prices move in opposite directions. This can be a very profitable opportunity for traders who understand the dynamics at play. Tune in to learn more about this trading strategy and how you can put it to use in today’s markets!

The most common arbitrage trading strategies include:

– Futures arbitrage

– Options arbitrage

– Convertible arbitrage

– Fixed income arbitrage

– Volatility arbitrage

– Statistical arbitrage

So, what is crude oil arbitrage? Crude oil arbitrage is the simultaneous purchase and sale of crude oil futures contracts in order to take advantage of price discrepancies between the two markets. This strategy can be employed when there is a difference in the price of crude oil between two different exchanges, such as the NYMEX and ICE. It can also be used when there is a difference in the price of Brent crude and WTI crude on your desired trading platform.


To see more Educational videos please click here to visit the Trading Talks page.

We hope you enjoy the episode.

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