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Properly speaking, this is not arbitrage. There are two criteria for arbitrage, it has to be riskless and self-financing. Looking at an item and saying, I sho
by NyxWulf 16y ago
Properly speaking, this is not arbitrage. There are two criteria for arbitrage, it has to be riskless and self-financing. Looking at an item and saying, I should be able to sell that for more is not an arbitrage. If you were able to locate a buyer willing to pay a certain price prior to purchasing the item, and then buy an under priced item and sell it to your buyer for more money, that would be arbitrage. Arbitrage is a sexy three dollar word that people like to throw around, but if you are risking loss in order to hopefully make a profit, then plain and simple it is not arbitrage.
- tansey 16y agoHe's doing statistical arbitrage.
- NyxWulf 16y agoWhat basis are you using for saying this is StatArb? Typically that involve hundreds or thousands of equities where you can use the laws of large numbers to your advantage. Buying one item that is below the average price of something and "hoping" you can sell it for more just doesn't strike me as any type of real arbitrage.
- djb_hackernews 16y agoStatArb has no dependency on equities. This is arbitration, Arbitration between two markets, his local craigslist market and the rest of the online market. There is no hoping, hes priced the item in one market and it is above the price of another, that is pure arbitrage.
- minimax 16y agoArbitration does not mean what you think it does.
- djb_hackernews 16y agos/arbitration/arbitrage/g my bad.