Arb Hedger Tuning
The arb hedger takes advantage of discrepancies or anomalies in prices of instruments by simultaneously buying and selling in different markets.
Arb modes
Arb Hedgers can be used to achieve different outcomes.
This is governed by its different modes it can be configured for a single mode or all at once:
- Risk Decreasing - opportunistic risk clearance
- Risk Increasing - to take proprietary positions
- NOP Decreasing - to reduce the positions held at various LPs to reduce the amount of collateral required at each LP. This trading may be risk increasing.
Speak to a member of the team to help with setting up any of the above types of arb hedger
Arb Targets
Which instruments and markets does the arb use?
Instruments
- hedging.arb.instrumentsIsAllDrivers => set to true to hedge in all available driver instruments.
- hedging.arb.instruments => set the above setting to false, and set an explicit list of instruments for the arb to trade
Markets
- hedging.arb.markets => list of markets to target (can put in instrument overrides)
- Risk Increasing
- hedging.arb.ri.markets => list of markets to target when making risk increasing trades (can put in instrument override)