locking in a profit Concepts

Everybody Loses: The Tumultuous Rise of American Sports Gambling

by Danny Funt · 20 Jan 2026 · 285pp · 100,897 words

, but Caesars really was just giving away free money. Customers had to “play through” their deposit once in order to withdraw the matching offer. To lock in a profit, a customer could hedge using Caesars and another sportsbook. Say the New York Giants were playing and the “line” for the game’s total score

The Nature of Technology

by W. Brian Arthur · 6 Aug 2009 · 297pp · 77,362 words

the price was higher than $8.40 the farmer could sell on the market; if the price was lower he could exercise the option, thus locking in a profit at the cost of purchasing the option contract. The value of the contract “derived” from the actual market value—hence it was called a derivative

Stigum's Money Market, 4E

by Marcia Stigum and Anthony Crescenzi · 9 Feb 2007 · 1,202pp · 424,886 words

similar strategy, it creates an open position in its book and thereby assumes a rate risk. One way it can eliminate that risk while simultaneously locking in a profit from the mismatch is by entering into a forward forward contract; that is, buying money of a fixed maturity for future delivery. In the example

Derivatives Markets

by David Goldenberg · 2 Mar 2016 · 819pp · 181,185 words

,000*(+$5.85–$5.9875)=–$68,750. Fortunately, the farmer was hedged in the forward market where he made a profit of, Overall, his position locked in a profit of $732,500–$68,750=$663,750. TABLE 2.7 Profit from the Fully Hedged Spot Position Wheat Spot Price @ Expiration Profits from a Naked

Market Wizards: Interviews With Top Traders

by Jack D. Schwager · 7 Feb 2012 · 499pp · 148,160 words

the dollar versus the yen during the interim. If the manufacturer wants to assure a fixed price in the local currency (yen) in order to lock in a profit, he can hedge himself by selling the equivalent amount of U.S. dollars in the interbank market for the anticipated date of payment. The banks

Traders, Guns & Money: Knowns and Unknowns in the Dazzling World of Derivatives

by Satyajit Das · 15 Nov 2006 · 349pp · 134,041 words

a lower price than the 30-year bond itself. They did precisely this, buying the components separately, and selling the 30-year bond short, to lock in a profit. The arbitrage group’s trade made money. Gutenfreund’s trade – which quickly gained the soubriquet ‘the Whale’ – lost a similar sum. Coats, a competitor of

Age of Greed: The Triumph of Finance and the Decline of America, 1970 to the Present

by Jeff Madrick · 11 Jun 2012 · 840pp · 202,245 words

developed, especially in options and futures contracts on government bonds and international currencies. Mergers gave rise to this riskier form of arbitrage. An arbitrageur could lock in a profit when one company offered shares at a premium for another. The arbs could buy the target company’s shares and sell the acquirer’s shares

The Signal and the Noise: Why So Many Predictions Fail-But Some Don't

by Nate Silver · 31 Aug 2012 · 829pp · 186,976 words

his bet. For instance, Voulgaris could have put $200,000 on Portland, who were 3-to-2 underdogs, to win Game 7. That would have locked in a profit. If the Blazers won, he would make more than enough from his hedge to cover the loss of his original $80,000 bet, still earning

Bernie Madoff, the Wizard of Lies: Inside the Infamous $65 Billion Swindle

by Diana B. Henriques · 1 Aug 2011 · 598pp · 169,194 words

vendor in a low-cost state and simultaneously selling them over the phone at a higher price in states where they are more expensive, thereby locking in a profit. Or it could be as complex as using computer software to instantly detect a tiny price differential for a stock trading in two different currencies

Learn Algorithmic Trading

by Sebastien Donadio · 7 Nov 2019

down from these synthetically raised higher prices. When prices have dropped sufficiently, the spoofer then buys at lower prices to cover the short position and lock in a profit. Spoofing algorithms can repeat this over and over in markets that are mostly algorithmically trading and make a lot of money. This, however, is illegal