Forex Arbitrage

[fxtrader01]

Does anyone know of any broker or system that will allow you to trade currency arbitrage? Basically arbitrage is to open 3 positions using three different currency pairs that will square off all positions and may get little profit if the fxrate is not in sync.

eg. Start with 1 USD which buys 0.80 EURO which buys 0.52 GBP which again buys 1.001 USD

Please let me know if anyone knows any trading platform or broker that allows this type of currency trading.

Cecee
tcgs2@yahoo.com

[Panurgo]

Originally Posted by fxtrader01

Does anyone know of any broker or system that will allow you to trade currency arbitrage? Basically arbitrage is to open 3 positions using three different currency pairs that will square off all positions and may get little profit if the fxrate is not in sync.

eg. Start with 1 USD which buys 0.80 EURO which buys 0.52 GBP which again buys 1.001 USD

Please let me know if anyone knows any trading platform or broker that allows this type of currency trading.

Cecee
tcgs2@yahoo.com

I think no broker-dialer would allow to square that position.
With my broker you can open the 3 position for a profit and without any margin requirements, however to be square you have to offset them.

[mishak]

Forex is the perfect market, there is no triangular arbitrage opportunity for small traders. Save your time.

[fobos]

It can be done if you have interbank quotes with 1 pip spreads, specially written software on your own, made to measure platform , and gauranteed instant fills for all your orders, because divergencies only last a few seconds.

No high street retail broker is going to pass on an opportunity to make risk-free money to anyone that happens to ask .

[Gamma_Jammer]

Exactly - the speed and spreads are key, as well as the ability to enter your own bids and offers rather than cross the spread every time.

And another thing that makes a difference for arbers at banks is that they get some client flow as well. So you might get two legs of a EUR/USD/CHF trade done and then a customer comes in and buys USD/CHF from you at a wider price than you could get even by sitting on the offer on EBS. Plus you may have another bank's platform on your desk, and voice brokers as well. It's the diversity of liquidity that often makes the difference, so it's really not gonna be an option for 99.9% of retail traders.

But you don't necessarily need software. The guys who do it on bank spot desks are just unbeleivably fast on the keypad (no mouse - custom built EBS / Reuters keypads only). For those who played video games in the 80s, think track and field and you'll get the idea ;-)

GJ

[fxtrader01]

Originally Posted by Panurgo

I think no broker-dialer would allow to square that position.
With my broker you can open the 3 position for a profit and without any margin requirements, however to be square you have to offset them.

Would mind letting me know who your borker is?

Thanks.

tcgs2@yahoo.com

[whyohwhy]

fxtrader01
How about these? ....... http://www.propfx.com/

[fxtrader01]

Originally Posted by whyohwhy

fxtrader01
How about these? ....... http://www.propfx.com/

Hi,

Thanks very much. Did you have any experience with using this broker and/or their trading platform?

Thanks.

Cecee
tcgs2@yahoo.com