3 ms·
Arbitrage (as done by APs) is mostly about gathering an instantaneous spread. Much like market makers, that strategy is not about holding a position.
by rocqua 7y ago
Arbitrage (as done by APs) is mostly about gathering an instantaneous spread. Much like market makers, that strategy is not about holding a position.
- jonknee 7y agoYes, but strategies change in a crash. It's possible no one learned from the 2015 flash crash, but I bet a lot of smart funds out there are ready for one. If a dumb AP is going to put out a crazy price someone is going to be there to snap it up.