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eur/usd arbitrage broker?

  • Post #1
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  • First Post: Oct 29, 2009 1:38pm Oct 29, 2009 1:38pm
  •  kingfisher
  • | Joined Oct 2009 | Status: Member | 1,192 Posts
I know one broker which offers 0.9 pips spread between eur/usd.

Another broker offers 2 pips spread between eur/usd.

Can i buy eur/usd from first broker and then sell same eur/usd to the second broker?
  • Post #2
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  • Oct 29, 2009 1:41pm Oct 29, 2009 1:41pm
  •  Price
  • | Joined Sep 2007 | Status: Member | 980 Posts
Quoting kingfisher
Disliked
I know one broker which offers 0.9 pips spread between eur/usd.

Another broker offers 2 pips spread between eur/usd.

Can i buy eur/usd from first broker and then sell same eur/usd to the second broker?
Ignored
No more than you can buy gas at the pump, and then take it across the street and get the posted 4 cents higher.

Not gonna happen.
 
 
  • Post #3
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  • Oct 29, 2009 1:48pm Oct 29, 2009 1:48pm
  •  kingfisher
  • | Joined Oct 2009 | Status: Member | 1,192 Posts
Okay...the right name of this thread should be 'broker arbitrage'
 
 
  • Post #4
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  • Oct 29, 2009 2:28pm Oct 29, 2009 2:28pm
  •  shrike
  • Joined Jan 2007 | Status: Member | 1,818 Posts
I think you are a bit confused about 'arbitrage'.

Say, Broker A quotes 30/31 (1 pip spread) and broker B 29.5/31.5 (2 pip spread).

So you buy at 31 from Broker A and sell at 29.5 at broker B. Congratulations, you just locked in a 1.5 pip loss. That is, without slippage on either leg. There just is no arb because of wider spreads alone.
 
 
  • Post #5
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  • Last Post: Oct 29, 2009 3:01pm Oct 29, 2009 3:01pm
  •  kingfisher
  • | Joined Oct 2009 | Status: Member | 1,192 Posts
Right Shrike.
 
 
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