Markets are NOT perfect - Christmas Present

Hello, Everybody!

Markets are NOT perfect. Many states the opposite, they are. And states, it s futile to speculate.
To those, who does not know, here is an example:

My current position: I have some yearly average inflation following (+1.75%) state bond (Hungary), offered after the Ukranian war started. This year, it pays 16%. Next year it will be more.
You can say: it s a simple long bond pos. It is. BUT! Additional info: At last autumn, when our Central Bank offered these bonds, the goverment barriered the ceiling of the mortgage at Hungary. You could get a loan for around 10.5%, when You could count out AT THE SAME TIME, You will get, AT LEAST 14,5% next year (in 2023). It came out to 16%, as I mentioned.
This is an ARBITRAGE opportunity. It was open for about 3-4 months.
Time to time I found one. Now, check it, think about it. Search for them, exploit them!

Thread Rules: 1, Don t attack each other (and my English), even if You have different opinion. Just tell Your ones, reason it, and thats all.
2, Don t sell, scam ANYTHING HERE!

Nice Christmas to Everybody!

So if You can see BEFOREHAND, (CPI datas are out every month, so You can Know the Yearly Average CPI way earlier) You will get FREE money:
Interset rate on the bonds - (loan rate + costs)
You can ask, and what if when the interest goes under loan rate? Than You can sell the bonds to the CB, next day they paid You the yearly rate.
Is THIS Market perfect? No. NOT, in this case. But they corrected it.

It is not an FX example, but the partcipants are the same. (And I wanted to show You a REAL, LIVE one.)

What I wanted to show You: "Mistakes" DO occur! Even so big ones! (Again, again, and again...)
Search them, exploit them!

So, AFTER , We established the most important thing, there are situations, when the Market is NOT perfect, We can start to think, how to realise them, and how to exploit them?

Thank you for sharing your insights into market dynamics and arbitrage opportunities. It's fascinating to hear about strategies like the one you've described involving state bonds and mortgage rates in Hungary.
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Let's continue to engage in constructive discussions and share valuable insights without selling or promoting any products or services.