Ask Michael Burke Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Ask Michael Burke

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: John Tais who wrote (189)	7/31/1996 12:59:00 PM
From: Knighty Tin	of 132070

John, I don't usually play this type of arbitrage, which is referred to as "risk arb" by the traders. You bet a lot to gain a little, and these deals do occasionally fall through. For the pros who pay no commission and buy at the bid and sell at the offer, it can be a good long term business. But for most of us, risk arb is a long term loser. So, though I see some room to make a little money, I'm not the best guy to ask about this type of arb as I wouldn't do it. I prefer my paired trades to have more upside potential, which means you have to do them before there is an announcement of any sort. MB

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next