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arb trading
- Thread starter Econmajor
- Start date
Quote from Econmajor:
long eur/usd
short gbp/usd
short eur/gbp
aren't you technically neutral here? I know most fx brokers don't allow you to offset positions this way, so after paying the spread or a commission, couldn't you use this to try to pick price movement descrepencies?
were are the problem??!!
the broker gonna take
2 pips for the eurusd
3 pips for the gbpusd
3 pips for the eurgbp
and u still gonna have the risk of the cross eurgbp
and if u keep it for long term u well loose in the intersest rate
where is the point?
Quote from 4X4Living:
were are the problem??!!
the broker gonna take
2 pips for the eurusd
3 pips for the gbpusd
3 pips for the eurgbp
and u still gonna have the risk of the cross eurgbp
and if u keep it for long term u well loose in the intersest rate
where is the point?
There is no risk of the cross eurgbp- it's a fully hedged position.
That said, the mispricing will VERY rarely exceed the spread and/or transaction prices. Otherwise it would be free money.
If you want to try to trade like that go take a look at this thread
http://kreslik.com/forums/viewtopic.php?t=307&postdays=0&postorder=asc&start=0
I tried a few trades using his system of FPI
Basically, you will never beat the spreads or commision, unless you can hit a huge spike on the FPI
http://kreslik.com/forums/viewtopic.php?t=307&postdays=0&postorder=asc&start=0
I tried a few trades using his system of FPI
Basically, you will never beat the spreads or commision, unless you can hit a huge spike on the FPI