V. 22:6 (59): Q&A by Don Bright

V. 22:6 (59): Q&A by Don Bright
Item# \V22\C06\120QA.pdf
$2.95
Availability: In Stock

Product Description

V. 22:6 (59): Q&A by Don Bright

ARBITRAGE

With regard to arbitrage, I think I understand the reasons why someone trading from a retail account cannot realistically (or should I say consistently) capture arbitrage opportunities. Based on what I can gather, the barriers to entry for “the little guy” are:

1. Cost. This includes commissions but also includes the effects of the bid/ask spread for retail customers.

2. Speed of execution. This includes not only the ability to spot the opportunity quickly, but also the speed with which you get filled.

Based on your experience, is this correct? Which of these two is the biggest obstacle? I’m sure there are other barriers, and I would certainly appreciate your thoughts on what the other (potential) obstacles are. Thanks — Marcus

Arbitrage takes many forms, and most of them have little or nothing to do with “speed of execution.” I realize that there are a few people who try to play the minor disparities between markets like a video game, but in my opinion, this is way too difficult for such a small amountof gain. . .




FOR THOSE ORDERING ARTICLES SEPARATELY:
*Note: $2.95-$5.95 Articles are in PDF format only. No hard copy of the article(s) will be delivered. During checkout, click the "Download Now" button to immediately receive your article(s) purchase. STOCKS & COMMODITIES magazine is delivered via mail. After paying for your subscription at store.traders.com users can view the S&C Digital Edition in the subscriber's section on Traders.com.




Take Control of Your Trading.
Professional Traders' Starter Kit
All these items shown below only $299.99!
  • 5-year subscription to Technical Analysis of STOCKS & COMMODITIES, The Traders' magazine. (Shipping outside the US is extra. Washington state addresses require sales tax based on your locale.)
  • 5 year access to S&C Archive
  • 5 year access to S&C Digital Edition
  • 5-year subscription to Traders.com Advantage.
  • 5-year subscription to Working Money.
  • Free book selection.
  • Click Here to Order