How to profit from "difference in currency"

[Youss27]

I know some guys made profit through arbitraging. They will usually look for some 'not well known' brokers where their prices differ from the other brokers.

Some took advantage of the price delay. Some brokers are slightly slower than the other brokers. You can also exploit this. The bad side is, some brokers will ban you if they found out. So you got to check with your brokers if they allow this kind of trading.

On how to exploit this, whenever you see a price difference you will have to buy on one broker and sell on the other, simultaneously.

You have to make sure that the difference should value more than your spread, commissions, and other costs (if any).

Thank you will look into it

 

[FXbeachbum]

Unless the OP is saying a pip doesn’t equal a $1 on every mini lot on every currency cross, and thinks he found something. But that would have to do with base currency differences and their exchange rates.

 

[newwurldmn]

Hi all,

There is broker A and broker B. They offer forex products such as options and with the same underlying except one counts in euro's and the other in yen. So if the underlying moves one pip up broker A will pay 1 dollar and broker B will pay 100 yen which equals 0.9 dollar. This means there is a difference that perhaps offers an opportunity for profit.

What kind of (option/spot forex) strategy should I use to profit from this currency difference?

There is no arbitrage. The difference in scale will be offset by the different notional you have to trade to remain market neutral. Add to that that you will have several crosses to to get back to dollars, you will incur tons of transaction costs.