Arbitrage (2012)

Trader's Film Library #12 · Markets and trading in fiction. A thriller about what happens when you don't accept a loss.

Original title: Arbitrage · Type: film · Created by: Nicholas Jarecki · Usefulness for traders: ★★★☆☆

What it's about

Fund boss Robert Miller (Richard Gere) tries to sell his firm before a hole left by a failed investment, which he has hidden in the books, comes to light. At the same time he gets into trouble in his private life.

What it has to do with markets

The film captures a mechanism every trader knows: instead of accepting a loss, you hide it, hoping it will “somehow come back”, and every further step deepens the problem.

Lessons for traders

• a loss you don't accept grows (loss aversion, Atlas of biases #34)
• one lie needs more lies: dissonance and escalation of commitment (Atlas of biases #64 and #41)
• credibility is capital you can lose in an instant

What to watch out for

More domestic thriller than markets. Educational value: the psychology of hiding losses.

Discussion

The discussion takes place in Hetman Capital Club (in Polish). Join the discussion in the Club →

Navigation

← #11 Wall Street: Money Never Sleeps · Film Library index · #13 Capital →

The description outlines the plot without revealing the ending where possible (true stories have a known outcome). Educational content, not investment advice.