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Arbitrage

Arbitrage is the practice of buying and selling the same security, currency, or commodity simultaneously in different markets in order to take advantage of price differences. Arbitrage is typically a low-risk investment strategy, as it involves buying and selling the same asset, rather than taking a position in a particular asset.

There are several different types of arbitrage, including statistical arbitrage, which involves taking advantage of price discrepancies between different markets or sectors, and risk arbitrage, which involves taking advantage of price discrepancies between a company's stock price and the value of its assets.

Arbitrage can be a profitable investment strategy, as it allows investors to take advantage of price discrepancies that may exist in different markets. However, it is important to note that arbitrage opportunities may be rare and may not always be available. Additionally, arbitrage may involve taking on additional risks, such as the risk of losing money if the price of the asset moves against the investor.

Overall, arbitrage can be a useful investment strategy for those who are able to identify and take advantage of price discrepancies in different markets. It is important for investors to carefully evaluate the risks and potential rewards of arbitrage before making any investment decisions.

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Conditional orders have increased risk due to their reliance on trigger processing, market data, and other internal and external systems like an exchange. Such orders are not sent to the market until specified conditions are met. During that time, system outages with downstream technologies or exchanges may occur. Furthermore, exchanges may impose controls on conditional orders to limit erroneous trades triggering downstream orders. HyperTrader or its subsidiaries may not always be aware of such changes to external controls immediately, leading to some conditional orders not being executed. As such, you need to monitor your conditional orders for reasonability. Conditional orders are “Not Held” orders whose execution instructions are on a best-efforts basis upon being triggered.

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All investments involve risk, and the past performance of a security or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against the loss, in a down market. There is always the potential of losing money when you invest in securities or other financial products. Investors should consider their investment objectives and risks carefully before investing.

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