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I think you're conflating computational finance with geographical arbitrage, and its pursuit by some traders. Computational finance is a general discipline that
by ashika 16y ago
I think you're conflating computational finance with geographical arbitrage, and its pursuit by some traders. Computational finance is a general discipline that's more concerned with modeling and prediction of future asset prices, whereas the problem discussed in the article/paper has virtually nothing to do with prediction or modeling. It's much more about the pennies made when taking related product's prices to equilibrium in global markets, and a novel strategy of doing that.
- powera 16y agoI guess the solution is more to combat computational finance, but if there is time for prices everywhere to propagate between trades, the opportunities for geographical arbitrage diminish greatly. I think it's a bug in the system that this arbitrage can even exist, though. It's not like, say, rice, the location of your shares doesn't matter.