Today, in the network and in reality, you can notice a huge amount of announcements that “Playing on the stock exchange is simple.” Such advertising is distributed mostly by new companies providing brokerage services. In fact, the game on the stock exchange is not a simple matter and it is necessary to learn it no less than when receiving any other education.
Any action in the foreign exchange market or market with any other assets carries a risk, since a trader can only assume the most possible scenario, but do not know for sure. Everyone who has achieved success in this field knows how often the price of error is high
But do not forget that a large number of companies that offer brokerage and other services in the sphere of exchange trade generates and decent competition, which leads to a reduction in commissions, spreads, and an increase in the quality and speed of service. Against this background, a completely new currency trading strategy emerged, which reduces the standard risks from an incorrect decision to the minimum values – this is forex arbitrage.
Forex arbitrage trading became possible due to the imperfection of the systems of quotes in terminals between different DCs and, as a consequence, some “slowing down” of the rate of displaying quotations of the same trading instrument from different brokers. The result of this is the price advance in one of its terminals in the second, which is what the trader uses when working on an forex arbitrage system.
As soon as there is a discrepancy in the price of the spread, the transaction opens in the direction of the price movement, which is kept open until the quotations are equalized. Such a scheme is called “one-legged” arbitrage.
There is also a “two-legged” arbitrage on forex, …Read More