How Investors Use Arbitrage
How Investors Use Arbitrage
3 months ago
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If you identify an arbitrage opportunity early, it could lead to riskless profits. But, the more market participants catch onto this and trade on it, the arbitrage opportunity disappears. Sometimes, no one will act on it because the cost of acting on it might exceed the profit from the opportunity. Think of it like this: if you had a very bad back, would you risk it flaring up by picking up P1 from the ground? I hope not. But, for P1 million, you would, cause you can use some of that money to pa
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