Market Neutral - Profits from Relationship Reversion Not Direction
| Strategy Type | Statistical Arbitrage and Relative Value Mean Reversion |
| Market Outlook | Market Neutral - Profits from Relationship Reversion Not Direction |
| Risk Profile | Reduced Market Risk Through Hedged Positions |
| Reward Profile | Consistent Returns from Spread Mean Reversion |
| Time Horizon | Short-term to Swing Trading (1-10 days typical) |
| Capital Requirement | Higher (Two Simultaneous Futures Positions Required) |
| Margin Type | SPAN + Exposure for Both Legs; Some Margin Benefit from Hedging |
| Best Used When | NIFTY-BANKNIFTY spread deviates significantly from historical norm |
| NIFTY | 25 units per lot |
| BANKNIFTY | 15 units per lot |
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