I've just started
doing some arbitrage trading using a couple of online cryptocurrency exchanges, but I'm not sure what details I need to keep for the tax man.
Not exact matches
The «
arbitrage» community also plays a role in these loops, especially when quoted bond «prices» don't reflect the reality of where the bonds would
trade.
The reason that every man and his dog was not eager to
do this
trade is that the cost of storing oil is now so high that even a contango that represents a potential 40 % annualised return on a physical - futures
arbitrage is not very profitable.
Arbitrage trading often relies on real - time data that is accurate to the millisecond in order to
do this safely.
That's why there is no clear
arbitrage or leveraging opportunities in dividend investing because employing these «
trading» techniques doesn't work for a 5 - 10 + year investment.
That doesn't mean that it doesn't occur, it's just that in certain countries — like Indonesia, Malaysia and Nigeria, where it's difficult and expensive to send money abroad —
arbitrage trading can be difficult, costly and often not worthwhile.
30 - year swap yields should not be less than Treasury yields — they are more risky, but
do do the
arbitrage, one would need a very strong balance sheet, with an ability to hold the
trade for a few decades.
Because making markets in NextShares
does not involve
arbitrage, NextShares can maintain efficient share
trading without disclosing fund holdings.
Because NextShares
trade at NAV - based prices, market making
does not involve
arbitrage or expose market makers to intraday market risk.
I managed to pick up some shares at $ 1.15 at the start of
trading, but I
do think the merger
arbitrage is also attractive at the current price of $ 1.25: it's still possible to make a 6.4 percent absolute return.
That's why there is no clear
arbitrage or leveraging opportunities in dividend investing because employing these «
trading» techniques doesn't work for a 5 - 10 + year investment.
Investment strategies that involve debt (e.g.
trading on margin, credit card
arbitrage, borrowing money) is very risky and the average investor doesn't have a reason to engage in that level of risk.
Arbitrage has nothing to
do with the speed of execution or the type of order placed, it is commonly associated with automated
trading but is not limited to it, which might be where the confusion comes in.
Without getting into too much detail it is this
arbitrage that keeps the supply and demand somewhat in line so that the price doesn't deviate wildly based on daily
trading.
Although the Journal
did not describe the
arbitrage mechanism, its story claimed that narrowing spreads between the bitcoin price and the GBTC price allowed traders to profit as they would when
arbitraging an exchange -
traded fund (ETF) and its underlying assets.