I always like to clarify the arming distance question to new players. The torpedo must run a minimum of 300 M to arm. In the minds of new players they often interpret this: "I must fire from 300 M away and I'll be alright." They are not the same thing. Your minimum firing distance must take into consideration the movement of both the torpedo and the target. If your target is moving toward you, then you must fire at greater range than 300 M. By the time the torpedo hits a closing target the torpedo will have travelled less than 300 M. Very important to consider this if you are firing at an escort which is closing in on you. On the flipside, you can fire from less than 300 M if the target is pulling away from you. It's all a matter of mathematics and very logical once you understand it.
As others said, you could suffer damage from a target carrying ammo or other volatile cargo should it go off with a great boom! I learned this the hard way once when firing the deck gun. It really makes you feel stupid when your gun crew gets killed from debris flying off of the ship you were gunning down. You tend not to make that sort of mistake more than once.
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