Any reason not to trade 6E over EURUSD?

Quote from atticus:

Triangular-arb is a loser for those of you considering it. Adding the edge-loss on binaries is just silly. Which do you think involves more microstructure loss? Nailing the correlation or trading friggin binaries?

it can be done though. there are lots of professional firms that spend loads of money for options contracts to make a very small spread. They just trade A LOT to compensate for them spending a shit load of $ to make a few cents.
 
Quote from Elitist Trader:

^ Fixed your post

Leave the edits to your nonsense. There is a massive buy-side fund [>$10B] in NYC in this space with the best systems and relationships. They did 6% in 2008 on their triangular-book with leverage.
 
Quote from sakhter:

it can be done though. there are lots of professional firms that spend loads of money for options contracts to make a very small spread. They just trade A LOT to compensate for them spending a shit load of $ to make a few cents.

So you went from spouting gibberish about some fantasy correlation hedge to an argument about market-making?
 
Six percent in 08 with all that volatility and broken correlations?

You beat that in the first month of 2008 if I do recall. And everything you do is scalable.

Telling a chick at the bar that you trade triangular arbitrage is a surefire way to NOT to get her to sleep with you. It might work at Hydrate or Sidetrack though.
 
Quote from Bigpipn:

Six percent in 08 with all that volatility and broken correlations?

You beat that in the first month of 2008 if I do recall. And everything you do is scalable.

No, it's a pure-arb if held to term. The point was simply that they probably held gearing of 200x to arrive at a 6% net-return, and the fools on this forum are experts.

Veyron, my advice to you is to quit now and burn your login credentials.
 
Quote from atticus:

Leave the edits to your nonsense. There is a massive buy-side fund [>$10B] in NYC in this space with the best systems and relationships. They did 6% in 2008 on their triangular-book with leverage.

I consider myself enlightened.
 
Quote from atticus:

No, it's a pure-arb if held to term. The point was simply that they probably held gearing of 200x to arrive at a 6% net-return, and the fools on this forum are experts.

Veyron, my advice to you is to quit now and burn your login credentials.

Ah, must be held to term.

200x for 6%?! How could they sleep at night? I can barely keep my cortisol levels at bay with 100x for 5 minutes.
 
Quote from Bigpipn:

Ah, must be held to term.

200x for 6%?! How could they sleep at night? I can barely keep my cortisol levels at bay with 100x for 5 minutes.

You're not quite getting it. They're essentially risk-less, so it's geared to what their Prime/LOC will bear.
 
Quote from Bigpipn:

Ah, must be held to term.

200x for 6%?! How could they sleep at night? I can barely keep my cortisol levels at bay with 100x for 5 minutes.
omg, learn what tri-arb is before even considering joining a conversation about it.
 
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