Trading and Exchanges Chapter 17: When Arbitrage Goes Wrong (Part 2)
In Part 1 we covered what arbitrage is, the different types (pure vs speculative), and how arbitrageurs keep prices consistent across markets. Sounds like easy money, right? Buy low here, sell high there, pocket the difference. This part is about why it is not that simple. Harris lays out four specific risks that make arbitrage genuinely dangerous, and he has some incredible real-world examples to prove it.