For many years, large hedge funds have profited from corporate mergers and acquisitions through a trading strategy known as risk arbitrage. Individual investors have long overlooked this low-risk trading strategy that works in any market condition.

With risk arbitrage, you know what your profit will be and when you can close that position when you place a trade. The strategy is not based on statistics or forecasts, but is instead based on an actual offer by another company to acquire your shares, and is structured so that your profit is immune to fluctuations in stock price.