I have been in the forex world for few months but still trying to understand things...
Recently I heard about Triangle arbitrage and wanted to test it on a Demo account .... I have been using interbankfx and her is what I found in the last 3 days....
LONG EURGBP (1 Std Lot)
LONG GBPJPY (1 Std Lot)
SHORT EURJPY (1 Std Lot)
Here are the total profit losses for this combination...
Day 1 (Night) -$150 (immedeatly after opening due to spread)
Day 2 (Morning) +$300
Day 2 (Night) +$50
Day 3 (Morning) +$150
Day 3 (Evening) -$350
amounts are rounded not exact ....
I see a clear swing which can be used to make profits...
I have searched here in FF and found couple of topics on this concept and almost every one was mentioning that this concept cannot be applied in SPOT forex with the brokers we have... and some people talk about the arbitrage calculators... I am sure I am MISSING SOME THING and I understand that there is no free money.... but what is the problem of using this with the brokers like interbankfx... is arbitrage trading not allowed by most of the brokers.... do they check for triangle trades... other than slippage and other technical reasons is there a reason for not using this strategy....
-Sud
Recently I heard about Triangle arbitrage and wanted to test it on a Demo account .... I have been using interbankfx and her is what I found in the last 3 days....
LONG EURGBP (1 Std Lot)
LONG GBPJPY (1 Std Lot)
SHORT EURJPY (1 Std Lot)
Here are the total profit losses for this combination...
Day 1 (Night) -$150 (immedeatly after opening due to spread)
Day 2 (Morning) +$300
Day 2 (Night) +$50
Day 3 (Morning) +$150
Day 3 (Evening) -$350
amounts are rounded not exact ....
I see a clear swing which can be used to make profits...
I have searched here in FF and found couple of topics on this concept and almost every one was mentioning that this concept cannot be applied in SPOT forex with the brokers we have... and some people talk about the arbitrage calculators... I am sure I am MISSING SOME THING and I understand that there is no free money.... but what is the problem of using this with the brokers like interbankfx... is arbitrage trading not allowed by most of the brokers.... do they check for triangle trades... other than slippage and other technical reasons is there a reason for not using this strategy....
-Sud