Arbitragers are aware of and participate in every market, from corn to cotton to sugar futures to soybean options to toys at garage sales and flea markets.
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arbitragers transfer selling pressure from the futures market to the stock market, while speculators absorb selling pressure.
So if the Fed hoped to lower long-term rates by buying long-term securities without somehow lowering investors' expectations about future interest rates,
arbitragers would simply do the opposite --that is, buy short-term securities and sell long-term securities--and the yield curve would not change.
The Wall Street Journal last week reported the despair and frustration felt by
arbitragers and hedge funds when megadeals like Fox-Time Warner or Sprint and T-Mobile were abandoned.
The difference is that in developed markets the profit margins are wiped out by the actions of the
arbitragers themselves.
After seeing record volumes this year, the Dubai Gold & Commodities Exchange expects to more than double its trading volume in gold futures contracts next year, reflecting growing demand from retail investors and
arbitragers, a senior executive said yesterday.
As explored below, the ubiquity of these archetypes can be seen in the way in which
arbitragers both rely on racialization and seek to evade it through cosmopolitan networking.
But, because China's exchange rate and interest rates are inflexible, the CNH-CNY spread persists, and
arbitragers are able to reap fat profits at the economy's expense.
Other cases began to make their way to the courts to challenge the bourgeoning number of squatters, prospectors,
arbitragers, and experimenters steadily advancing on the vast amount of unclaimed territory often referred to as Cyberia.
Kirzner and others sometimes justify this maneuver by writing as though Kirzner's context is that of some narrow economic model in which multiple
arbitragers move the market toward equilibrium.
Arbitragers are finding that they can buy the product from the refineries on the Gulf Coast and have it delivered by train to Chicago in five days.
For example, if the FX basis is greater than zero,
arbitragers could borrow dollars unsecured at a relatively low interest rate and then lend the dollars through an FX swap at a relatively higher implied interest rate.
