What are the benefits of pair trading?

00:55 Mins Read

This video discusses the 3 main benefits of the pair trading strategy.

Transcript

Pair trading gives you 3 main benefits. Firstly, you have the potential to generate returns no matter which way the overall market moves. Secondly, every pair trade inherently mitigates risk. Even if one stock performs differently than expected The other stock can help make up for some of the losses. And finally, pair trading comes with a degree of certainty. Two assets that have a good historical correlation will most likely converge again after a divergence. These advantages make pair trading suitable for different types of traders. Want to learn more about the technical details of pair trading? Head to the next chapter in this module to learn about pair trading stats.

Get Information Mindfulness!

Catch-up With Market

News in 60 Seconds.


The perfect starter to begin and stay tuned with your learning journey anytime and anywhere.

Visit Website
logo logo

Get Information Mindfulness!

Catch-up With Market

News in 60 Seconds.

logo

The perfect starter to begin and stay tuned with your learning journey anytime and anywhere.

logo

Ready To Trade? Start with

logo
Open an account