5 ms·
Is this always true? One thing I wonder is, given that the amount of money needed to move the needle in a market could be actually quite large, how much money w
by awongh 8y ago
Is this always true? One thing I wonder is, given that the amount of money needed to move the needle in a market could be actually quite large, how much money woyuld you need to make off a given inefficiency before it becomes a zero-sum game? Is it 10s of thousands? Hundreds of thusands? Millions?
And given some metric like trading volume how much does that affect that number?
I've heard of some hedge funds raising way less than they could have, maybe because their strategies would be killed much faster with 500mm than with 50mm ?
- blackflame7000 8y agoIt's not a zero-sum game because debt is limitless. Imagine an extreme example where you rigged the game and literally won all the money in the world and then kept winning, what would happen next? People would find another form of payment via services and the money is worthless if you are the only one who has it. Therefore you might lend them money in exchange for a service so that they will keep playing your rigged game now accruing a credit of services in addition to money.