# Equity Spread arb traders



## smiley20 (16 October 2008)

Hi,

Is it possible for retail traders to trade equity arb stuff.

For example:
SGB/WBC spread
QGC/SHG spread
BHP/BLT LN spread


etc

If someone in this room trades this, please message me.

Kind regards,
smiley20


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## skc (16 October 2008)

It would be difficult to do equity arb trade when you can't short shares.


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## MRC & Co (16 October 2008)

lol, true!  You cannot short stocks so cannot do spreads on individual equities.  

However, yes, retail traders can do them, why not?


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## smiley20 (17 October 2008)

Understood that you cannot short stocks at the moment and restricting you from doing these arbs. Is there any site which dedicates to this type of trading in-case I miss any deals? Thanks


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## mazzatelli1000 (18 October 2008)

smiley20 said:


> Hi,
> 
> Is it possible for retail traders to trade equity arb stuff.
> 
> ...




It can be done with options whether just calls or puts or vertical spreads
But Oz options are not very liquid 

US would be more suitable


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## smiley20 (18 October 2008)

Does anyone focus on equity arb? In terms of takeovers, preference shares etc?


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## skyQuake (19 October 2008)

smiley20 said:


> Does anyone focus on equity arb? In terms of takeovers, preference shares etc?




Staple food for quite a few hedge funds. Most of here probably don't have the capital or timeframe to effectively equity arb.


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