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View Full Version : Is it possible to eliminate ALL arbitrage opportunity in financial market?


sohpmalvin
07-21-2009, 05:25 AM
What do you think?

whui
07-21-2009, 04:37 PM
I think as long as most investors are rational and prefer more wealth than less, then there will be people searching for arbitrage opportunities at any given moment. I am sure there are super computers, which are running super algorithm, keep scanning for arbitrage opportunities worldwide and 24/7.

If you think in a calculus (differentiation and integration, and limit) sense, arbitrage opportunities exist only in split second before they disappear. I guess it is not so possible to eliminate all, but it could be possible to minimize the time interval of each occurrence in very efficient and transparent markets, from 10^(-9) second to 10^(-99) second, as time interval approaches zero.