Ok Ok what edge

Quote from Don Bright:

One edge is having the free use of a $million or more daily, for obvious reasons.

Don
No question about that. What does it cost to borrow $1M overnight per day?

nitro
 
Quote from Don Bright:

One edge is having the free use of a $million or more daily, for obvious reasons.

Don
That depends. For meager lazy edges maybe. For juicy nimble edges you wouldn't want that kind of capital. In fact $100K could make much better returns than the meager edge played with $1M.
 
Most of the best short-term edges are related to either stale pricing arbitrage or legal front running where you can predict when/where other less savvy traders will be buying or selling and you beat them to the punch.

One advantage that smaller traders have is that many of the best edges can only support limited capital. Institutional traders have higher overhead (their salary, desk space, IT guys etc.) and cannot afford to look at some of the smaller edges.
 
Quote from george_s:

...

One advantage that smaller traders have is that many of the best edges can only support limited capital. Institutional traders have higher overhead (their salary, desk space, IT guys etc.) and cannot afford to look at some of the smaller edges.
You got it George!
:cool:
 
George S

Well said....

One advantage that smaller traders have is that many of the best edges can only support limited capital. Institutional traders have higher overhead (their salary, desk space, IT guys etc.) and cannot afford to look at some of the smaller edges.

Is the major advantage......
 
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