Economics, Econometrics and Finance
4 years ago

Financial markets vulnerable to missed opportunities due to limited participation.

SSRN Electronic Journal
Limits to Arbitrage when Market Participation is Restricted
Thorsten Hens, P. Jean‐Jacques Herings, Arkadi Predtetchinski

Paper Summary

Arbitrage opportunities in financial markets may not always be taken advantage of because traders need to pay attention to all markets at once. If they don't, some opportunities will be missed for sure.

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