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Arbitrage Comprehensive

An Introduction to The World of Successful Arbitrage 

What is Arbitrage?

Exploiting price differences

between markets for profit.

Arbitrage.

The practice of taking advantage of price differences between markets.

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Arbitrage Aids Price Efficiency.

By exploiting price differences, arbitrageurs help supply meet demand, reducing spreads across markets.

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Arbitrage Requires Expertise.

There are many forms of arbitrage and all opportunities require knowledge of the underlying market fundamentals.

Arbitrage is a Market Feature. β€‹

The availability of large profit to arbitrageurs is an important feature of the market, encouraging efficient capital flows.
 

Arbitrage is Value-Add.

Arbitrageurs extend the reach of Smith's 'invisible hand' to all markets, delivering important pricing information.

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Arbitrage is Not Risk-Free.

Nothing exists without risk. Smart arbitrage involves mitigating risks to minimal levels through research, diversification, and strategic discipline.

Richard Chandler
$2.9B Net Worth

When the market gives you the opportunity to arbitrage... 

you've got to pull the trigger promptly without hesitating.

BN-XR440_3nyrS_OR_20180228164322_edited.

Bill Ackman
$1.7B Net Worth

Time arbitrage... has been a major source of profitability

at Pershing Square since the inception of the firm

Bill Miller
$1.1B in Bitcoin

Time arbitrage just means exploiting the fact that most investors... tend to have very short-term time horizons.

Warren Buffett
$85.2B Net Worth

Give a man a fish and you will feed him for a day. 

Teach a man to arbitrage and you will feed him forever.

Strategies of Billionaires

Time, Value, Market, Merger, Regulatory, Risk.

All have one thing in common:

They're Billion Dollar Arbitrage Strategies.

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