Mean Reversal strategy that identifies medium and long term opportunities used to exploit financial markets that are out of equilibrium and assumes prices will eventually adjust to and reflect the fair value with certain predictability. It mostly uses pair trading and uses the concept of equilibrium of oscillation of long and short positions and applies a set of rules to spot inefficiencies and produce return.

Profit situation arising from pricing inefficiencies between securities that is identified through mathematical and statistical modelling techniques.

Index arbitrage: Trading Index against a basket of its component stocks.