What is No Arbitrage

🌏 No arbitrage is a fundamental concpet to the Modern Portfolio Theory and pricing models for the most complex financial products such as Black-Scholes option pricing model. Some works from those academic giants has been recognised with Nobel Prizes. However, The basic idea is simple, No profit gain is possible without taking appropriate risks in an efficient market. Or simply No pain, no gain. It is a practical philosophy of living.

No Arbitrate (this site) is my personal blog created to share practical financial knowledge, ranging from basics to advanced concepts, and from theory to hands-on spreadsheet techniques. It’s a space for exchanging ideas, making connections, and inspiring both readers and myself.

My Background

I am Joseph Cai, a financial analyst living in London, originally from China. With over a decade of formal academic training in finance, my expertise lies primarily in corporate finance. However, my interests extend well beyond that field. I'm deeply fascinated by derivative products, largely due to their mathematical rigor and the sophisticated modeling they require.

In recent years, I've also embarked on a journey to expand my technical skill set through programming. I started with SQL and then moved on to DAX (Power BI), M-Scripting (Power Query), and Python. Lately, I've been experimenting with automating tasks using TypeScript in Excel.

Who Is This Blog For?

If you have a curiosity about finance and a desire to grow their knowledge in the field. Whether you're a finance major, a professional preparing for exams like the CFA, a business manager looking to sharpen your strategic skills, or an entrepreneur seeking funding for your next venture, I hope you'll find value here.

I'll be sharing a mix of original content and insightful pieces from other sources. My goal is to create a resource that not only educates but also inspires. Whether you're looking to pick up a new technical skill, unwind on a quiet Sunday afternoon, or find motivation during a late-night work session, I hope my posts will provide what you need.

Life is about Learning

I've taken many turns in my career, and one thing I've learned is that life's path is rarely a straight line. A valued mentor and friend once encouraged me that if you are focused on your goal and learn from mistakes, you will reach there sooner or later. The most meaningful achievements often take time to materialize. It's crucial to be patient and stay committed to the process because, in the words of James Clear from Atomic Habits:

"The seed of every habit is a single, tiny decision... It is your commitment to the process that will determine your progress."

You have to trust that you can rise through and above adversity.

▶ Please note that none of the content on this site should be considered financial advice; any decision-making should be evaluated based on specific cases.

Let's Connect

I'm always open to making new connections and exchanging ideas. Feel free to reach out to me on LinkedIn, if you'd like to connect or have a chat. Let's learn, grow, and inspire each other!