| The Mazu Business Pack makes some pretty | | | | a known price in the future does not today |
| grandiose claims. They claim that, by | | | | trade at its future price discounted at the |
| purchasing their training package, one can | | | | risk-free interest rate (or, the asset does |
| make $100 to $1000's per week in passive, | | | | not have negligible costs of storage; as |
| residual income without having to sell | | | | such, for example, this condition holds for |
| anything. It sounds almost too good to be | | | | grain but not for securities). |
| true, but is it? | | | | |
| | | | For example, if you can buy items at one |
| Included in the $297 Mazu Business Package | | | | price at a factory outlet and sell them for a |
| is: an overview DVD, downloadable | | | | higher price on an internet auction website |
| step-by-step instructions, access to the Mazu | | | | such as eBay, you can exploit the imbalance |
| "member's area", a 2-hour affiliate seminar | | | | between those two markets for those items. |
| on audio cd, and entry into the Mazu | | | | |
| affiliate program. According to the company | | | | According to the encyclopedia, arbitrage |
| website, this package gives the user | | | | transactions in modern securities markets do |
| information about 10 of the most lucrative | | | | involve fairly low risks. The key is being |
| income streams available today. | | | | able to identify these imbalances quickly and |
| | | | execute the trade before the market shifts. |
| One of these incomes streams is arbitrage. | | | | This can be challenging and nearly impossible |
| According to Wikipedia (an online | | | | for the novice, but according to Matt Gagnon, |
| encyclopedia), arbitrage is defined as: the | | | | the founder of Mazu, his software makes it |
| practice of taking advantage of a state of | | | | possible. It is an automated program, which |
| imbalance between two or more markets: a | | | | checks every few seconds for arbitrages |
| combination of matching deals is struck that | | | | around the world. When an arb is found a bell |
| exploit the imbalance, the profit being the | | | | goes off, and the user then places their |
| difference between the market prices. The | | | | arbitrage. |
| term is mainly applied to trading in | | | | |
| financial instruments, such as bonds, stocks, | | | | Arbitrage is one of the reported 10 income |
| derivatives and currencies. Arbitrage is | | | | streams included in the pack. Not all of |
| possible when one of three conditions is met: | | | | streams are revealed on the website, but they |
| | | | claim that the others are also quite valid |
| The same asset does not trade at the same | | | | and lucrative. Mazu also offers a full refund |
| price on all markets ("the law of one | | | | if the purchaser does not make money in the |
| price"). Two assets with identical cash flows | | | | first thirty days. |
| do not trade at the same price. An asset with | | | | |