arbitragers
Gap-profit traders
Arbitragers are traders who profit from price differences for the same asset in different markets—buying where it's cheap and selling where it's more expensive.
The practice, arbitrage, exploits temporary inefficiencies: Currency arbitragers moved quickly when the exchange rates diverged.
Also spelled arbitrageurs.
Those betting on markets
- tradersProfessional buyers and sellers
- hedge fundsPooled alternative investment vehicles
- Wall StreetAmerican finance hub
- positionsLocations or viewpoints held
profits · spreads · transactions · dealers · brokers · market makers · institutional investors · day traders
Medium of exchange
- forexCurrency trading market
- commoditiesTradeable raw materials
- securitiesTradeable financial assets
- bondsTies that unite
equities · derivatives · futures · options · crypto · stocks · cross-border · emerging markets
Failures to optimize
- risk-freeHaving no downside
- simultaneousHappening at same time
- convergenceProcess of approaching sameness
- mispricingIncorrect cost assignment
discrepancies · opportunities · exploitation · margins · timing · execution · algorithms · speed
Finite instruction sequences
- high-frequencyRapid oscillation rate
- latencyDelay in system response
- automationSelf-operating system design
- softwarePrograms directing computer operations
bots · quantitative · models · signals · co-location · milliseconds · API · real-time
speculators
Those betting on markets
- tradersProfessional buyers and sellers
- hedge fundsPooled alternative investment vehicles
- Wall StreetAmerican finance hub
positions · profits · spreads · transactions · dealers · brokers · market makers · institutional investors · day traders · financiers
currency
Medium of exchange
- forexCurrency trading market
- commoditiesTradeable raw materials
- securitiesTradeable financial assets
bonds · equities · derivatives · futures · options · crypto · stocks · cross-border · emerging markets · exchanges
inefficiencies
Failures to optimize
- risk-freeHaving no downside
- simultaneousHappening at same time
- convergenceProcess of approaching sameness
mispricing · discrepancies · opportunities · exploitation · margins · timing · execution · algorithms · speed · leverage
algorithms
Finite instruction sequences
- high-frequencyRapid oscillation rate
- latencyDelay in system response
- automationSelf-operating system design
software · bots · quantitative · models · signals · co-location · milliseconds · API · real-time · computational