In economics and finance, arbitrage is the practice of taking advantage of a price differential 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 purchased the Polk CS2 I saw on slickdeals.net for $109 total cost from newegg. Then I put my Bose VCS-10 for sale on ebay.
Ideally the Bose VCS-10 sells for $100, which seems to be around its fair market value per that exchange.
I have described this as an arbitrage even though I will lose at least $9 on this deal, because I will profit in a richer and more audible home audio experience, not in cash money dollars.
In this way, I hope to profit from what I see as a mismatch in prices across the these two exchanges.
In economics and finance, arbitrage is the practice of taking advantage of a price differential 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.
ReplyDeleteSo, what are you doing?
I hope this involves Craigslist
ReplyDeleteI purchased the Polk CS2 I saw on slickdeals.net for $109 total cost from newegg. Then I put my Bose VCS-10 for sale on ebay.
ReplyDeleteIdeally the Bose VCS-10 sells for $100, which seems to be around its fair market value per that exchange.
I have described this as an arbitrage even though I will lose at least $9 on this deal, because I will profit in a richer and more audible home audio experience, not in cash money dollars.
In this way, I hope to profit from what I see as a mismatch in prices across the these two exchanges.
PS The VCS-10 did not move on craigslist.
ReplyDeleteI thought about buying that speaker, but I'm gonna wait until i'm out of this shithole apartment I'm in.
ReplyDeleteI wanted a center speaker with at least two 6.5" speakers, and this fit the bill.
ReplyDelete