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#22
11-07-2006, 05:25 PM
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Re: *** Official Arbitrage Posting Thread : 11/06 - 11/12 ***
Its not a problem.
But when there 17 out of 20 posts in a thread are off-topic, something's wrong and i figured it was worth splitting [img]/images/graemlins/grin.gif[/img] 
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#24
11-07-2006, 05:33 PM
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Re: I\'m shocked that these arb threads are still going.
chachi,
has the wide release of information hurt +ev opportunities in the financial markets?
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#25
11-07-2006, 05:45 PM
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Re: I\'m shocked that these arb threads are still going.
Well, that's a bad example. The financial markets grow as more money is put in, since it's being used as capital to help real businesses.
Sports betting is a zero sum market (with the books included). In this case, all money made comes directly from someone else, rather than being a mutually profitable scenario.
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#26
11-07-2006, 05:50 PM
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Re: I\'m shocked that these arb threads are still going.
MT2R, I'm pretty sure you're being sarcastic, but the answer to that question is a resounding YES, and it perfectly illustrates chachi's point.
Back 50 years ago, before financial data feeds and the internet, asymetric information regarding data as simple as the trade price history, market depth, or last earnings announcemnt was prevelent. That is much, much less common now, and there is less of a chance for the smarter traders (arbers) to exploit ignorant traders (the books). Now that almost everyone has all public information, there are many more "smart" traders, and that kind of easy exploitation and arbitrage is much harder to come by.
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#27
11-07-2006, 06:16 PM
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Re: I\'m shocked that these arb threads are still going.
no...not sarcastic...just curious
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#28
11-07-2006, 07:03 PM
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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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#29
11-07-2006, 08:06 PM
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Re: I\'m shocked that these arb threads are still going.
[ QUOTE ]
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. [/ QUOTE ] When you arb, the profit comes out of the books pocket. More arbers=more losses for the books. The more the books lose the more the industry shrinks.
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