Arbitrageurs strategically limit trades to outsmart competition and maximize profits.
The article discusses why some investors choose to limit their trading opportunities instead of fully taking advantage of them. This happens because sharing their trading ideas can lead to competition in the future. The decision to limit trading opportunities depends on how easy it is to find them and how quickly they can be profitable. The study shows that deliberate limits to trading are more common for opportunities that are not too slow or too fast to make money, and this effect is stronger when opportunities are easier to find.