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0 pointsjonknee6y ago0 comments

Authorized participants arbitrage all day, if they see dislocation they can certainly hold on to certain names.

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rocqua6y ago· 1 in thread

Arbitrage (as done by APs) is mostly about gathering an instantaneous spread. Much like market makers, that strategy is not about holding a position.

jonkneeOP6y ago

Yes, but strategies change in a crash. It's possible no one learned from the 2015 flash crash, but I bet a lot of smart funds out there are ready for one. If a dumb AP is going to put out a crazy price someone is going to be there to snap it up.

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