I am sorry, I am not sure I understand then the principal behind the pair trading. What kind of guess ( estimate ) is made then about the future behavior of 2 arbitrary stocks?
1. Is it like expecting a reversal of beta to its average historical value? Do I understand this correctly?
2. Don't you have to select a pair of stocks based on their correlation that has meaningful standard deviation?
I still don't understand your point. If you don't plan to sue them why don't you want to sign their agreement? Secondly, no agreement can stop you from suing them for real(!) monetary damage you suffered from their actions.
>>Why would anyone do something that they have to do with their time when they can do something that they want to do with their time.
There is no contradiction between doing something one wants to do and getting rich.
I don't trade currencies. I was interested in your thread b/c it proposed the idea of using currency portfolio for saving. Do you trade CFDs with Oanda?