Back in the bear market of 2003, when I was
trading index arbitrage, I was getting disillusioned with trading (this happens in bear markets) and was contemplating my next career as a newsletter writer.
Not exact matches
He worked at Lehman Brothers from 2001 to 2008 — first as an
index arbitrage trader and then as head of the ETF
trading desk.
The common element is that any long position taken in a specific equity is offset by a short position in either a merger partner (risk
arbitrage), an «overvalued» member of the same sector (long / short paired
trading), a convertible bond (convertible
arbitrage), a futures contract (
index arbitrage) or an option contract (volatility
arbitrage).
There's
indexing, value investing, swing
trading,
arbitrage, options
trading, forex
trading, etc..
The common element is that any long position taken in a specific equity is offset by a short position in either a merger partner (risk
arbitrage), an «overvalued» member of the same sector (long / short paired
trading), a convertible bond (convertible
arbitrage), a futures contract (
index arbitrage) or an option contract (volatility
arbitrage).
Arbitrage trades by these participants narrow the gap between ETF market prices and the net asset values of the
indexed shares.