If you are bored with traditional data analysis and risky nature of FOREX market then FOREX Arbitrage can be a good option to try. It is not among the most profitable trading strategies but it is surely among the least risky ones. Moreover, it is a bit different than conventional FOREX trading hence it can prove out to be entertaining for most people.
The concept behind Arbitrage is very basic and simple to understand. In an ideal world, prices of a single security or currency should be same everywhere. However, it is not the case in the real world where prices may slightly differ due to lack of complete information and some other market conditions. So, Arbitrage strategy follows the most basic principle of any market. It means to buy a currency from a broker who is selling at a lower rate and simultaneously sell at a higher price to a broker who is willing to pay the higher price.
It is virtually impossible to successfully execute these trades with manual analysis as the window of time is usually very small. Hence, different trading software is used which provide real-time data and option of automatic trades to professional FOREX traders.
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