Hi all,
so i found out that sometimes there is disallinement between 3 pairs of currency, usually EU/GBP , USD/GBP and EU/USD, without making all the maths here, i can tell that sometimes it comes around 0,0005 or so. So theoretically i should be able to buy 1 EU for 0,9995 instead of 1.
My question is: since this is a FX market where you can buy only positions,
how can i asssure that my mix of positions will yeld the 0,0005 arbitrage difference? ( of the 6 possible buy/sell options on pairs i found out that only 2 are profitable ). I mean, assuming that i could buy "simmultaneously" all 3 positions, if i resell them in the next second assuming no change occured i end up with no profit, since a position bought for 100 sells for 100 ( thecnically i lost the 2 or 3 pips of difference from Ask/Bid price). But if a change in the pair occurs i might be in loss or in profit but this kind of thinking adds "risk" to the arbitrage.
So could any1 enlighten me up with this thing....i really cant think of a method to yeld the difference.......
Thanks.
so i found out that sometimes there is disallinement between 3 pairs of currency, usually EU/GBP , USD/GBP and EU/USD, without making all the maths here, i can tell that sometimes it comes around 0,0005 or so. So theoretically i should be able to buy 1 EU for 0,9995 instead of 1.
My question is: since this is a FX market where you can buy only positions,
how can i asssure that my mix of positions will yeld the 0,0005 arbitrage difference? ( of the 6 possible buy/sell options on pairs i found out that only 2 are profitable ). I mean, assuming that i could buy "simmultaneously" all 3 positions, if i resell them in the next second assuming no change occured i end up with no profit, since a position bought for 100 sells for 100 ( thecnically i lost the 2 or 3 pips of difference from Ask/Bid price). But if a change in the pair occurs i might be in loss or in profit but this kind of thinking adds "risk" to the arbitrage.
So could any1 enlighten me up with this thing....i really cant think of a method to yeld the difference.......
Thanks.
I might not know, I might not have the money, but remember, I have TIME!