Talk:Arbitrage

Regarding the amount lost by Long Term Capital

$100 Billion is an exaggeration.

True. The right figure depends on the time frame you use. Christofurio 00:16, May 27, 2005 (UTC)

Sports betting

'Sports arbitrage' is probably an established term but it's inprecise: bookmakers also offer odds on political, pop-culture and other events, some even on financial market events. I would call it 'Betting arbitrage' - I added an article on related practice, arbitrage betting, however it's far from being perfect yet. BTW, how can I make 'betting investment' and 'arbs' point to the same article?Adolg 11:27 18 October 2005, GMT

Long-Term Capital Management

"For example, it would buy U.S. Treasury securities and sell Italian bond futures. The concept was that because Italian bond futures had a less liquid market, in the short term Italian bond futures would have a higher return than U.S. bonds, but in the long term, the prices would converge. Because the difference was small, a large amount of money had to be borrowed to make the buying and selling profitable."

I am having some trouble understanding the above, can you please elaborate?

From what I understand. Italian bond futures have a less liquid market, in the short term Italian bond futures would have a higher return than U.S. bonds : Because Italian bond futures are cheaper they give higher returns than U.S. bonds. but in the long term, the prices would converge : Should you not be buying Italian bond futures instead? I'm sure I'm missing something. Can you please explain in some detail?

yes the example given does not make sense. nor does the categorization of the negotiated bail-out as "global macro arbitrage" ... that term has a specific meaning which is very different

Crypto arbitrage

There have been a number of edits/reverts regarding crypto arbitrage lately. Some consensus on the appropriate discussion should be provided. It is not clear to me if there is anything specific to arbitrage for crypto compared to other spacial arbitrages. If there is something distinct, then this should be provided and include citations. If there is nothing distinct, I propose this subsection be deleted. Zfeinst (talk) 08:09, 14 June 2024 (UTC)

Hiya; I added a section on atomic-arbitrage for decentralized-exchanges on blockchains. This is something that has been researched a lot, and definitely warrants it's own section, since there is no real equivalent principle in traditional finance. The dynamics for it are unique to cryptocurrency, and billions of dollars are being extracted as a result of it every year.

I do wonder if the other section on "Crypto arbitrage" is a bit... too generic? Maybe if it specified that it's arbitrage between centralized exchanges, that might be better perhaps OliGarrett (talk) 08:32, 19 July 2026 (UTC)