This article grew out of recent work of Dykema, Figiel, Weiss, and Wodzicki (Commutator structure of operator ideals) which inter alia characterizes commutator ideals in terms of arithmetic means. In this paper we study ideals that are arithmetically mean (am) stable, am-closed, am-open, soft-edged and soft-complemented. We show that many of the ideals in the literature possess such properties. We apply these notions to prove that for all the ideals considered, the linear codimension of their commutator space (the ''number of traces on the ideal'') is either 0, 1, or ؕ. We identify the largest ideal which supports a unique nonsingular trace as the intersection of certain Lorentz ideals. An application to elementary operators is given. We study properties of arithmetic mean operations on ideals, e.g., we prove that the am-closure of a sum of ideals is the sum of their am-closures. We obtain cancellation properties for arithmetic means: for principal ideals, a necessary and sufficient condition for first order cancellations is the regularity of the generator; for second order cancellations, sufficient conditions are that the generator satisfies the exponential ⌬2-condition or is regular. We construct an example where second order cancellation fails, thus settling an open question. We also consider cancellation properties for inclusions. And we find and use lattice properties of ideals associated with the existence of ''gaps.'' T he algebra B(H) of bounded linear operators on a separable, infinite-dimensional, complex Hilbert space has only one nonzero proper closed two-sided ideal, the class of compact operators K(H). There is, however, a rich structure of nonclosed two-sided ideals of B(H) (operator ideals). Their study was initiated by Calkin (1), who established a lattice isomorphism between ideals and characteristic sets, i.e., the hereditary (solid) positive cones ⌺ ʚ c* o (the collection of monotone sequences decreasing to 0) that are invariant under ampliation: 3 ( 1 , 1 , 2 , 2 , 3 , 3 , . . .). Given an ideal I, call ⌺(I) :ϭ {s(X)͉X ʦ I} the characteristic set of I where s(X) :ϭ ͗s n (X)͘ is the sequence of s-numbers of X, i.e., the eigenvalues of ͉X͉ counting multiplicities and arranged in decreasing order with infinitely many zeroes added in case X is finite rank. Conversely, if ⌺ is a characteristic set, the diagonal operators diag with ʦ ⌺ generate the (unique) ideal I such that ⌺(I) ϭ ⌺.For each ideal I, we denote by [I, B(H)] the commutator space for I (also known as the commutator ideal), i.e., the linear span of all the commutators XB-BX where X ʦ I and B ʦ B(H). Commutator spaces are central to the theory of operator ideals. For instance, they play a key role in defining traces (see the next section). Starting with Halmos (2) and Pearcy and Topping (3), a great deal of effort has been devoted over the years to characterizing commutator spaces for various ideals (see ref. This result, along with others in ref. 4, have consequences in the area of operator ideals and traces. Here we explore some of ...