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Re: PayDirt! post# 40736

Monday, 05/14/2007 8:36:56 PM

Monday, May 14, 2007 8:36:56 PM

Post# of 143047
There are market makers and other players who can trade in both markets. In fact, that's how the prices stay aligned--if they diverge, someone will buy in the cheaper market and sell in the more expensive market, thereby realigning the prices.

That's what people mean when they refer to "arbitrage." There are traders who do nothing but look for arbitrage opportunities--divergences in the markets that they can take advantage of.


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