05-22-2008, 05:20 PM | #11 |
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Arbitrage is riskless profit of any kind. What kind of arbitrage are you wondering about? Interest rate? Exchange rate? With transaction costs and efficient global markets true arbitrage is nearly impossible.
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05-22-2008, 05:43 PM | #12 | |
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There are other arbitrages, say seeing a low offer on a stock or currency in one market then turnaround and selling it at a better bid in another country or on another exchange. Of course once that is done the markets will often move back into alignment. I think it would be rare for an individual to regularly make money in such a fashion because the differences are rather small and the retail commisions and bid/ask spreads would eat up your potential profits. |
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05-22-2008, 05:56 PM | #13 | |
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Contingencies is a fantastic magazine and I highly recommend it to everyone. You can read it online: http://www.contingencies.org/ |
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05-22-2008, 06:58 PM | #14 |
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