Im a latency trader or at least was. It doesnt work any more. Unfortunately once you find a broker the software providers join in and you are finished within days or a week if you are lucky.
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Hm, and which trading style/strategy you moved to?
One more arbitrage strategy if you use multi-leg arbitrage software.
1. find broker with good IB commissions and register account via IB
2. find currency with lowest spread
3. check swap and find broker with swap to hedge your ib broker
4. open hedge
5. adjust multi-leg arbitrage software to reopen hedge when spread is minimal in 1 side only (account via IB)
6. make volume and earn money
Enjoy!
For arbitrage, there must be a good broker who gives back the earned, there must also be a stream of fast quotes. at the moment the arbitrage is still working
I'm really interested in this subject. I can't understand how brokers detect arbitrage. What if I'm a client for many brokers and I just decide to buy from the cheapest or to sell from the most expensive? Isn't it my right to do so? If I have many offers I choose the most convenient for me. I'm not making any arbitrage, but they might think so I guess, so how can they know?
I'm talking about ECN brokers, not market makers, so there shouldn't be any conflict of interest.
I'm really interested in this subject. I can't understand how brokers detect arbitrage. What if I'm a client for many brokers and I just decide to buy from the cheapest or to sell from the most expensive? Isn't it my right to do so? If I have many offers I choose the most convenient for me. I'm not making any arbitrage, but they might think so I guess, so how can they know? I'm talking about ECN brokers, not market makers, so there shouldn't be any conflict of interest.
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Many brokers act as execution venues. Arbitrage profit considered as risk-free, i.e. in their opinion you gain an unfair advantage. But still for some markets it is possible to hold positions longer than 2-3 seconds so they let you withdraw your profits.
{quote} Many brokers act as execution venues. Arbitrage profit considered as risk-free, i.e. in their opinion you gain an unfair advantage. But still for some markets it is possible to hold positions longer than 2-3 seconds so they let you withdraw your profits.
Ignored
Thank you for the reply. So if I hold the position for a few seconds (or even minutes for that matter) I would be allowed/not detected? And what markets are you talking about? Forex market?
If you use software that allows you to keep trades longer then couple ms (for example 10 sec +), some brokers will be ok with your trades. usually it is true ecn brokers. But in this case you need really fast feed. I use bjf latency arbitrage and it is not open a lot of trades, but no problem with broker. My idea - 40% per month with low risk settings. I know that some traders catch arbitrage situations 1-2 pips difference, in this case software opens a lot of trades and closes trades within ms. I use difference =5 and for gold 8-10 pips. SL should...
