Hmm, am I getting something wrong here? How should this strategy work? You would have to receive the same price for both your long and short position in order the get the 7500/15000 calculation.
Example for GBP/JPY:
BID 240,00 / ASK 240,10
You go long at your spread betting firm at 240,10 and short at your normal FX broker at 240,00. This is a difference of 10 pips. Now you would just have to be a prophet to know that your short trade will trade up to 240,10 so that you get the same price like on your long trade and you will have to be one because when you close both trades you will always get a loss of exactly those 10 pips which makes the whole theory obsolete. Perhaps one might say: "oh come on, this pair has so much volatility, of couse it wents to 240,10", but, as I assume, thatīs not the core of the theory. Itīs about executing both orders simultaneously and this always produces 10 pips losses or 5 pips or whatever losses in GBP/USD.
But perhaps I am just getting something wrong.
regards
Example for GBP/JPY:
BID 240,00 / ASK 240,10
You go long at your spread betting firm at 240,10 and short at your normal FX broker at 240,00. This is a difference of 10 pips. Now you would just have to be a prophet to know that your short trade will trade up to 240,10 so that you get the same price like on your long trade and you will have to be one because when you close both trades you will always get a loss of exactly those 10 pips which makes the whole theory obsolete. Perhaps one might say: "oh come on, this pair has so much volatility, of couse it wents to 240,10", but, as I assume, thatīs not the core of the theory. Itīs about executing both orders simultaneously and this always produces 10 pips losses or 5 pips or whatever losses in GBP/USD.
But perhaps I am just getting something wrong.
regards