Forex Forums | ForexLasers.com


Go Back   Forex Lasers Forum > METATRADER FORUM > Expert Advisors / Robots


Interview with professional arbitrage trader.

Expert Advisors / Robots


Reply
 
LinkBack Thread Tools Search this Thread
  #1  
Old 11-01-2016, 18:47
Level IV Lasers Member
 
Join Date: Feb 2012
Posts: 143
Default Interview with professional arbitrage trader.

Interview with professional arbitrage trader. I hope it helps you to step out to the next level in your arbitrage trading.
You can read interview here: Arbitrage Trading Questions and Answers ? Forex Software
Reply With Quote
  #2  
Old 25-05-2016, 10:25
Level 1 Lasers Member
 
Join Date: May 2016
Posts: 9
Default Re: Interview with professional arbitrage trader.

can share my small experience.
The arbitrage you're referencing is called triangular arbitrage - and it's absolutely legal. The other tthing is that the fluctuations and inefficiencies which you'll see is usually so small that you won't be able to utlize them with your regular Forex broker - the spreads will be wider, execution time can kill you as well and so on. So it's all about technical stuff - you need to have really fast execution and honest broker :

I've also tried another type of the arbitrage - trading single instrument with multiple brokers (I've even made a software which was monitoring one instrument across several brokers and once the arbitrage was found - was sending orders to both of them). But unfortunately I've faced the same technical challenges - for example your software identified an arbitrage and you sending BUY to Broker1 and SELL to Broker2. As I've used metatrader the commands were send only on the next tick (not sure about another platforms but I presume there is the same stuffthere). But the problem is that Broker1 can provide you with this tick in short period of time while Broker2 can just "hang" - no ticks for several seconds - or even minutes. And once you get this tick the price is already changed. As the result you have one naked position at Broker 1, and worst case - second open position with Broker 2 but with crappy price. For example in my case FXCM was providing ticks just fine while others were "hanging".

So I would say that in case of arbitrage the speed is the key. Maybe it's possible to find two or more brokers which will give you the quick feeds so you'll be able execute at price close to your optimal. But I didn't manage to find such ones yet. I'm not saying its not possible - it just takes time.
Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are Off
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On


Similar Threads
Thread Thread Starter Forum Replies Last Post
VIP account for professional Trader unclegober Broker Talk 3 25-11-2015 04:48
A PROFESSIONAL Forex Trader KajolThappar Forex Discussion 11 05-06-2014 14:23
How to be a Professional Trader (Part 1) ForexGuy Market Insights 4 12-10-2013 03:17
How to be a Professional Trader (Part 3) BackTesting ForexGuy Market Insights 3 12-07-2013 14:00
We are professional fund trader forexmentor Software / Signals / Services 0 25-09-2011 15:20


All times are GMT. The time now is 13:29.


Powered by vBulletin® Version 3.8.10
Copyright ©2000 - 2019, vBulletin Solutions, Inc.