Ryph, do you arb money markets?

[Moose]

I know about scalping in sports betting, but I dont know the first thing about money markets. Do arbs present themselves often, or rarely if ever? I was looking at that post with x-rates.com in it, and was even thinking of converting some USD to AUD and seeing if the mighty dollar might fall a little more. Problem is I dont know how to exchange currency freely, and it would probably only yeild very small amounts anyways.

[rmk]

Are you talking about money markets or just currencies?

I don't really know how currency arbitrage would work since real arbitrage has to do with identical things trading for different prices. Forex is the most liquid market in the universe so misvaluations would get corrected superfast I'd imagine.

[Moose]

Are you talking about money markets or just currencies?

I don't really know how currency arbitrage would work since real arbitrage has to do with identical things trading for different prices. Forex is the most liquid market in the universe so misvaluations would get corrected superfast I'd imagine.

yea, not sure if there could be a true arb, or if there would have to be calculated speculation. I dont know. I know it happens multiple times daily in sports betting, was thinking about dabbling in other areas too.

[Moose]

Furthermore, the most I really know about 'trading' was when I threw a some money at the stock market in the late 90s. All you had to do back then was put money in and you were pretty much guaranteed growth it seems. I am FAR from a savvy investor on that front.

[rmk]

So in sports betting is it that one place offers different odds on the same event as another place?

[ryph]

So in sports betting is it that one place offers different odds on the same event as another place?

ya, as different brokers arrange their odds depending on the action they are receiving, in theory its possible to make 2 bets that hedge each other and have a guaranteed profit regardless of the outcome. theres whole sites and shit dedicated to this as well, so the best way to go about this, imo.. would be a giant pool of people in major cities with contacts to underground betting places to take advantage of arb opportunities that present themselves via the net and irl, since real life places i doubt would be on the radar of inet arbitrageurs. obviously youd need big pockets for this, but the MAIN issue is trust. i dont know too many people in major cities to be pulling this off to trust with the amount of money thatd be needed to make this profitable.

[ryph]

I know about scalping in sports betting, but I dont know the first thing about money markets. Do arbs present themselves often, or rarely if ever? I was looking at that post with x-rates.com in it, and was even thinking of converting some USD to AUD and seeing if the mighty dollar might fall a little more. Problem is I dont know how to exchange currency freely, and it would probably only yeild very small amounts anyways.

this is possible, but as rmk mentioned before, itd be next to impossible doing from home for example. places like goldman, jpmorgan and other huge international investment banks with direct 'lines' (so to speak) to the forex have what youd call black boxes, which are fucking powerful machines taking advantage of any split second discrepancy in the markets for fractions of a penny profit.

your best bet is to just invest with research.

[ryph]

if youre looking to get exposure to currencies, try some of the etfs that have become available that you can trade in and out via a regular stock broker.
http://www.currencyshares.com/

[syph0s]

Forex is definitely out of the loop for arbitrage. I been thinking of doing this for a cpl months, just haven't gotten to it. My thoughts though are setting up an account with a foreign bank, and just putting money into it... this hedges against the failing banks here, and creates a higher earning at the same time.

Does anyone know if there are regular stipulations against setting up a foreign bank account while living in U.S.? I have a buddy in Germany so if it fails I'll say I'm moving to Germany and have it routed to his address...

[ryph]

Forex is definitely out of the loop for arbitrage. I been thinking of doing this for a cpl months, just haven't gotten to it. My thoughts though are setting up an account with a foreign bank, and just putting money into it... this hedges against the failing banks here, and creates a higher earning at the same time.

Does anyone know if there are regular stipulations against setting up a foreign bank account while living in U.S.? I have a buddy in Germany so if it fails I'll say I'm moving to Germany and have it routed to his address...

this is called investing. take a look at the currencyshares link above

[syph0s]

this is called investing. take a look at the currencyshares link above

haha word, will do.

[ryph]

I don't really know how currency arbitrage would work since real arbitrage has to do with identical things trading for different prices. Forex is the most liquid market in the universe so misvaluations would get corrected superfast I'd imagine.

damnit got me scheming/thinking in this thread. anyone with the will, the stacks and managerial skills, could *technically* open up a forex account and start looking for arb oppurtunities at airports. you could possibly get better rates at banks or them conversion kiosks.. i believe they only update twice a day. buy a currency at arb, and short that same amount on your forex account. tiny percent is profit. blah this isnt practical, but hey might as well think about shit like this lol. get money.

[rmk]

ahah i just pictured us standing at a travelex both with a laptop trying to buy 200,000 euros just to make $900

[ryph]

ahah i just pictured us standing at a travelex both with a laptop trying to buy 200,000 euros just to make $900

LOL exactly. i mean whats the max at these things? 500or 1000 bucks? youd have to have like 50 minions posted up at tons of locations with stacks of every currency. theyd receive texts telling them what to do, at the same time you hedge against that purchase via forex contract. lololol.

[Torque]

There was a CSI episode that talked about this kind of betting.

[Moose]

There was a CSI episode that talked about this kind of betting.

they talk about scalping or middling? One is still a gamble, but your risk-to-reward is greatly reduced, while the other secures a guaranteed profit.