> misprice would have to be greater than any cap gains plus trading costs Tax is a percentage of the profit or loss. At the time-scale you're talking, it woul

> misprice would have to be greater than any cap gains plus trading costs Tax is a percentage of the profit or loss. At the time-scale you're talking, it would be ordinary income rates. If the difference between what you pay and what you get is $100 (after expenses), you pay taxes on $100, no matter how much you paid. Yup, even if you paid $10M and received $10M+$100.