Does Forex Arbitrage Work?

dpageok

Banned Spammer
Messages
3
What do you think about attached performance?
very interesting are you running a system there ?

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Pharaoh

Colonel
Messages
19,843
its work if broker permit it but work for a short time .
Many brokers are happy to permit it - until you try to withdraw the money. Then all the profits typically vaporize and the person who sold the system is the only one left with a profit.
 

iMusingKiMi

Sergeant
Messages
896
The best way and legal for arbitrage are with combination of spots, futures and options. For instance USD 80 stocks, 90 PUT cost 12, 90 CALL cost 1.80. Which means you can work out a "Conversion", which means sell stocks, SELL PUT and BUY CALL with a clean of USD 0.20 profits. This opportunity do exist and you have to act fast.
 

bigdolly

Sergeant Major
Messages
973
Tried several times to arbitrage on my forex broker's zero spread account, trying to find edge in correlation between pairs, unfortunately most of the times you fail to catch the movement and such moments are rare so you need to spend a lot of time which doesn't worth it.
 

Jeff Martinez

Recruit
Messages
100
The use of arbitrage can potentially be a valuable strategy for traders to make timely profits although there is also a high level of risk of loss. Advances in trading technology and high-frequency trading in some cases have made true “risk-free” arbitrage opportunities less common for small-scale investors. But they have also widened access to diverse markets where asymmetric information and market inefficiencies may still present arbitrage opportunities.
 

bigdolly

Sergeant Major
Messages
973
Dozens of answers were posted, but lets recap: its impossible to make money by arbitrage on retail platforms. Brokers simply won't allow you to exploit risk free tricks to pull money out of their pocket.
 
Messages
72
There are many broker in the market who try to catch a new trader with attractive offer and helps the trader for sometimes to trade. So that the trader will earn some profit and have faith on the broker. But after a time being unfortunately they close the account and banned the trader without any reason. Basically by this type broker try to cheat or scam. Same as, there are many trader in the market who also try to cheat their broker.
 
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