The trader’s mandate was to arbitrage (or switch) between Nikkei 225 futures in Singapore and Osaka. Such arbitrage involves buying futures contracts on one market and simultaneously selling them on another at higher price, whenever a price difference is spotted. Margins on arbitrage trading are minutely small since arbitrage trading is a very common activity in the market as everyone tries to take advantage of the price difference on a publicly traded futures contract. However, in arbitrage, one is buying something at one market while selling the same good at another market at the same time. Almost all risks are hedged and the strategy is not very risky.