what is the risk in arbitrage trades 
one of the most significant risks when engaging in arbitrage trades is a fluctuation of the asset price an interest rate could change and although the percentage change may be minimal arbitrage trades are usually highly leveraged and exposure to such an event could result in a significant loss if there are no willing buyers that is another problem as someone needs to purchase the asset for sale if the trader is going to make a profit investopedia does not provide tax investment or financial services and advice the information is presented without consideration of the investment objectives risk tolerance or financial circumstances of any specific investor and might not be suitable for all investors investing involves risk including the possible loss of principal 