LD Lossdog Research
topic

arbitrage

5 matching records.

Q&A

Have you investigated anyone using binary markets in conjunction with equity options markets?

The speaker acknowledges the question as an arbitrage opportunity and states that they are not aware of anyone actively doing this. They also note that high-frequency firms are not known to engage in such practices.

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Actionable takeawayThe speaker suggests that while the concept of arbitrage between binary markets and equity options is theoretically possible, there is no evidence of active implementation by traders or firms.
arbitrage
medium confidenceVerify in video at 50:23 ↗
Q&A

If you have a short put trade on and it's working, showing a profit but not near 50% yet, and not closer to 21 days to expiration, but your delta has decreased, would you roll your put strike to take additional credit? And is this an offensive roll?

Rolling the put strike to take additional credit is considered an offensive roll if the trader is bullish on the underlying asset. However, the speaker suggests that taking profits is a more common approach, especially if the trade is already profitable and the time to expiration is approaching.

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Actionable takeawayRolling the strike can be an offensive strategy if the trader is bullish, but taking profits is often preferred in profitable trades.
arbitrageOptions
high confidenceVerify in video at 53:27 ↗
Q&A

Why is there a discrepancy between natural gas prices in the UK/Europe and Henry Hub prices?

The speaker suggests that the discrepancy may be due to transportation costs, which make arbitrage unprofitable. They also note that the situation is unusual and that historical examples, such as the negative oil prices five years ago, indicate that market forces should correct such imbalances, but this has not occurred in the current context.

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Actionable takeawayTransportation costs may be a key factor in the current price discrepancy, making arbitrage unfeasible.
arbitrageMarket Outlooknatural gas
medium confidenceVerify in video at 42:17 ↗
Q&A

Is it possible to arb the prediction markets? Can you build your own tool to arb the prediction markets?

It is possible to arbitrage in illiquid markets, but not in listed places due to lack of fungibility, high fees, and wide spreads. Arbitrage opportunities between prediction exchanges are limited, and holding positions for long periods is not practical for retail traders.

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Actionable takeawayArbitrage in prediction markets is feasible in illiquid markets but not in listed exchanges due to market structure and costs. Retail traders should avoid attempting this due to practical limitations.
arbitrageprediction markets
high confidenceVerify in video at 1:17:41 ↗
Q&A

How did you get into trading?

The speaker started trading after discovering a triangular arbitrage opportunity involving USD, USDT, and INR. He capitalized on this opportunity, increasing his capital from $5,000 to $35,000 in about 1.5 months. However, the market crashed, leading to significant losses, and he had to take a break to rebuild his financial situation.

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Actionable takeawayTriangular arbitrage can offer high returns but is highly risky and requires a deep understanding of market dynamics.
arbitrageTrading Strategy
high confidenceVerify in video at 29:04 ↗