Quote:
Originally Posted by Unregistered
The last point that Buy-side are investors who buy something cheap and then sell it high is not accurate as there are many ways to trade the market besides buy cheap sell high, that may be more accurate to describe a value based mutual fund.
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Arbitrage, short selling, hedge away risk with options, high frequency trading, trading around economic announcements, global trends, synthetic positions - two options to form a stock and see whether its mispriced against the actual stock, long forward short underlying to get exposed to interest rates ...
Yes, I know there're tons of ways to make money. I just said buy low and sell high to very simply illustrate that function against what a market maker does.