it can be done though. there are lots of professional firms that spend loads of money for options contracts to make a very small spread. They just trade A LOT to compensate for them spending a shit load of $ to make a few cents.
Leave the edits to your nonsense. There is a massive buy-side fund [>$10B] in NYC in this space with the best systems and relationships. They did 6% in 2008 on their triangular-book with leverage.
So you went from spouting gibberish about some fantasy correlation hedge to an argument about market-making?
Six percent in 08 with all that volatility and broken correlations? You beat that in the first month of 2008 if I do recall. And everything you do is scalable. Telling a chick at the bar that you trade triangular arbitrage is a surefire way to NOT to get her to sleep with you. It might work at Hydrate or Sidetrack though.
No, it's a pure-arb if held to term. The point was simply that they probably held gearing of 200x to arrive at a 6% net-return, and the fools on this forum are experts. Veyron, my advice to you is to quit now and burn your login credentials.
Ah, must be held to term. 200x for 6%?! How could they sleep at night? I can barely keep my cortisol levels at bay with 100x for 5 minutes.
You're not quite getting it. They're essentially risk-less, so it's geared to what their Prime/LOC will bear.