Global arbitrage - Trading-Lab

StockOperator · #1 08-14-2007, 05:23 PM

not sure if "global arbitrage" is the right term to describe this trading strategy:

taking advantage of, let's say, some big news affecting the Asian markets, to take positions in the European or the US markets. Thus, riding the ripple effect. For example, if I heard bad news in Asia, I might short US futures on Globex, looking for a continuation. anyone trading this way?

daytraderB · #2 08-20-2007, 03:48 PM

until a few years ago, you could play mutual funds like that. On strong US markets closes, I would buy US mutual funds with foreign exposure, to play the overseas continuation of the trend…now they charge early redemption fees

Iacotel · #3 08-22-2007, 09:10 PM

hmmmm…I never did that, but I don't think it's possible to profit from delayed reactions. Markets always adjust and digest news almost istantaneously so it's always too late

ProTrader · #4 09-11-2007, 04:18 PM

I wouldn't call it global arbitrage. This would be much better called global speculation

hedger · #5 10-26-2007, 05:10 PM

all indices from around the world are interconnected every second. It appears that Globex follows the European markets. I prefer to look at it and say that Globex just continues in synch with the euro markets. Yes it can be interesting to consider this type of "trading". you have to be careful when taking position on Globex due to its illiquidity

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#1 08-14-2007, 05:23 PM
StockOperator Member Join Date: Jun 2007 Posts: 32	Global arbitrage not sure if "global arbitrage" is the right term to describe this trading strategy: taking advantage of, let's say, some big news affecting the Asian markets, to take positions in the European or the US markets. Thus, riding the ripple effect. For example, if I heard bad news in Asia, I might short US futures on Globex, looking for a continuation. anyone trading this way?

#2 08-20-2007, 03:48 PM
daytraderB Member Join Date: Jun 2007 Posts: 63	until a few years ago, you could play mutual funds like that. On strong US markets closes, I would buy US mutual funds with foreign exposure, to play the overseas continuation of the trend…now they charge early redemption fees

#3 08-22-2007, 09:10 PM
Iacotel Italian Trader Join Date: May 2007 Location: Roma Posts: 43	hmmmm…I never did that, but I don't think it's possible to profit from delayed reactions. Markets always adjust and digest news almost istantaneously so it's always too late

#4 09-11-2007, 04:18 PM
ProTrader Senior Member Join Date: Jun 2007 Posts: 109	I wouldn't call it global arbitrage. This would be much better called global speculation

#5 10-26-2007, 05:10 PM
hedger Member Join Date: Jun 2007 Posts: 38	all indices from around the world are interconnected every second. It appears that Globex follows the European markets. I prefer to look at it and say that Globex just continues in synch with the euro markets. Yes it can be interesting to consider this type of "trading". you have to be careful when taking position on Globex due to its illiquidity