[expat_panama]

When the arbitrageurs finally lose all confidence in the markets,

We really shouldn't let the word "arbitrage" get all bent out of shape like what's happened to "hedge fund".  Here's what it means:

ar·bi·trage

ˈärbiˌträZH/

noun

noun: arbitrage

1. 1.

   the simultaneous buying and selling of securities, currency, or commodities in different markets or in derivative forms in order to take advantage of differing prices for the same asset.

verb

verb: arbitrage; 3rd person present: arbitrages; past tense: arbitraged; past participle: arbitraged; gerund or present participle: arbitraging

1. 1.

   buy and sell assets using arbitrage.

It's buying and selling, as old and standard a practice as markets themselves.  Sure, it's become popular these days to condemn all market activity, but creating and selling to others that buy and consume is no more sacred than buying and selling to others that buy and sell.  These much maligned "middlemen" are necessary; they time shift, distance shift, or lotsize shift to make everything work.   Supply and demand is truly the law of the land.

[Sawdring]

When you use the term Lotsize are you referring to this:

Quantity of material or units of a manufactured good that can be produced or purchased within the lowest unit cost range. It is determined by reconciling the decreasing unit cost of larger quantities with the associated increasing unit cost of handling, storage, insurance, interest, etc. See also odd lot and round lot.

Read more: http://www.businessdictionary.com/definition/economic-lot-size.html#ixzz3n9DCc4k3