If you're diving into arbitrage trading, you might want to get acquainted with the logarithmic rate of return. This handy indicator can help you make sense of price movements. The formula for calculating it is straightforward:
ln(C/O) = ln(C) - ln(O)
Here, C represents the closing price, while O denotes the opening price.
To deepen your understanding of the logarithmic rate of return, take a look at this informative article: "Market Invariants: Why Traders Need Logarithms".
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