ArbitrageIn
economics and
finance,
arbitrage (
IPA: /'?rb?tr???/) is the practice of taking advantage of a price difference between two or more
markets: striking a combination of matching deals that capitalize upon the imbalance, the profit being the difference between the
market prices.
I assume that this will apply to CGG, if the stock shoots up on the HKE overnight, then we should open at whatever HKE closed at? Someone mentioned that the exchange opens at 1am? That means it'll be closed by the time our market opens. So arbitrage does not apply then? Whose exchange will drive the price? If Chinese investors go wild and push the price to 10 bucks for instance, we could open at 6. Arbitragers will buy the stock at 6 and try to sell them on the HKE, driving down the price. Does it really matter what the price is on HKE, we open at whatever the market here wants to pay or sell at.