Ok Ok what edge

Discussion in 'Professional Trading' started by jrlvnv, Jul 12, 2005.

  1. nitro

    nitro

    No question about that. What does it cost to borrow $1M overnight per day?

    nitro
     
    #81     Jul 18, 2005
  2. That depends. For meager lazy edges maybe. For juicy nimble edges you wouldn't want that kind of capital. In fact $100K could make much better returns than the meager edge played with $1M.
     
    #82     Jul 18, 2005
  3. Become a CEO of Morgan Stanley.

    if you are successful, you make a fortune.

    If you are unsuccessful, you do even better. :D
     
    #83     Jul 18, 2005
  4. Most of the best short-term edges are related to either stale pricing arbitrage or legal front running where you can predict when/where other less savvy traders will be buying or selling and you beat them to the punch.

    One advantage that smaller traders have is that many of the best edges can only support limited capital. Institutional traders have higher overhead (their salary, desk space, IT guys etc.) and cannot afford to look at some of the smaller edges.
     
    #84     Jul 18, 2005
  5. You got it George!
    :cool:
     
    #85     Jul 19, 2005
  6. George S

    Well said....

    One advantage that smaller traders have is that many of the best edges can only support limited capital. Institutional traders have higher overhead (their salary, desk space, IT guys etc.) and cannot afford to look at some of the smaller edges.

    Is the major advantage......
     
    #86     Jul 19, 2005