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Old 11-07-2006, 07:03 PM
Grasshopp3r Grasshopp3r is offline
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Join Date: Jun 2006
Location: Aurora, CO (suburb of Denver)
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Default Re: I\'m shocked that these arb threads are still going.

Arbing increases the market size, so in my opinion, they increase the total profit made by the industry. We all benefit with a bigger industry, as they can offer more bets, larger bets and will be better able to stay in business.

Why do arbs exist? It is entirely possible that the individual books are balancing different levels of action, which creates the arbs. Another point is that risk levels change, which result in arbs. It is the first type of arb that is beneficial to the sites and the second that is not. How are we to determine why the arb was created? Ultimately, arbs due to risk changes will result in the failure of the slow to react, as it is in every business.
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