Arbitrage Trading on Forex

The main idea of forex arbitrage is to simultaneously open multidirectional positions on the same currency pair. The main advantage of this trading strategy is that the risk of the operation is zero.

The idea of trading is as follows: imagine that we've two MetaTrader 4/5 terminals from different dealers/brokers. Comparing quotes in real time, we'll most likely find that they sometimes differ slightly. At the same time, we'll see that data from one terminal often slows down a little, come later than from the other. Thus, using a fast terminal as a guide, we can know what price will be in a split second on another terminal. And if the price difference in the terminals is greater than the spread, then you can open a position on the “braking”. Terminal. At the same time, it's not necessary to open the opposite position on the “fast”. Terminal, especially as to obtain profit in this case it's necessary that the price difference in the terminals be greater than the sum of the spreads. Thus, opening the position in the above way at the “braking”. Terminal, we'll have a constant statistical advantage in the trade. Closing a position is possible after the prices in both terminals are leveled. The position holding time can be any, it'll only affect the amount of deposit drawdown. Of course, the dealer/broker doesn't always allow you to open a deal at the price of interest. Even a few trades per day can bring a good profit.

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