Re:One of Wall Street’s Most Popular Trading Strategies Is N...
by Nasrudith on Sunday March 03, 2019 @02:02AM
(#19293175)
Especially if they are effectively arbitrage - if it is easy money to buy 50 cent widgets, pay 50 cent for transportation and sell them for $5 in an area where they are for sale for $10 then someone can make a further profit by arbitraging your new price - and that is before supply and demand come into play.
[ Parent
| on HN ]
Re:One of Wall Street’s Most Popular Trading Strategies Is N...
by askmike on Sunday March 03, 2019 @02:26AM
(#19293243)
At the end of the day arbitrage is zero sum, there is a fixed amount of money to be made from this market inefficiency (based on your margin, your costs and the amount you can buy and sell). Regardless if you are the only one doing it or not (if you are not you are competing for a piece of the pie).
Note that the strategies described in this article are not arbitrage nor zero sum.