cr6196 Posted November 1, 2012 Share Posted November 1, 2012 I have been arbing for a while but recently got involved in one on Intrade (I bet you guys will be able to work out what I have done pretty quick). Basically, the opportunity exists and I have locked in prices but I think my position sizes are wrong...although I am not sure why. The back side is 2.91 - liability/position size is £380.00 The lay side is $4.27 which is the same thing as 2.34 - my liability is $1028.53 which is about £658-ish - I think I have gone wrong on the lay side with my position being too big. Either way, I have totally confused myself with this (am panicking slightly as the event is coming up soon) so it would be great if someone could run through the numbers. (To explain Intrade, if your "short" at $4.27 and the event happens the market settles at $10 so your loss is $10-$4.27 * number of shares, if the event doesn't happen $4.27 * number of shares). I am sure this is totally mundane to most of you but could really do with some help! Quote Link to comment Share on other sites More sharing options...
cr6196 Posted November 1, 2012 Author Share Posted November 1, 2012 Re: Check my workings please (kind of urgent)!!! Sorry I should add that I believe my mistake on the "short" side was due to misunderstanding how the gains and losses on Intrade work... Quote Link to comment Share on other sites More sharing options...
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