# main arbitrage & statistical arbitrage concepts

can we please summarise here some of the basic concepts, tools used in arbitrage and statistical arbitrage in real life?

1. ARB: benefit from price difference on same asset
2. ARB: difference between stock index and syntetic index constructed from stocks
3. ARB: triangular arb (is this being exploited? by who? where?)
4. ARB/STATARB: difference between futures and theo futures
5. STATARB: cointegration/correlation

these are main directions I can think about at the moment. can you add more? link or brief description

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 "Arbitrage" is broad field. The tools and concepts used in arbitrage would be a book. – chrisaycock♦ Mar 13 at 18:31 thanks. yes, sure, but as above: we can highlight main ideas. is there something as important as above which I haven't mentioned? – restart.localhost.localdomain Mar 13 at 18:33

There are many. Just to list a few:

Capital structure arbitrage (CDS)
Convertible bonds arbitrage
Merger arbitrage
Latency arbitrage
@Andrew it is CHF/PLN FX pair, some day of February 2011, it is converted from Delta-Term surface which was already created with linear interpolation. in my conversion algorithm interpolation doesn't matter so much because I take every point $(\tau,\Delta,\sigma)$ of original surface and convert to corresponding $(\tau,K,\sigma)$ point. ofcourse there is still question what interpolation to use for this new surface – restart.localhost.localdomain Mar 14 at 20:39