USD/JPY * EUR/USD = EUR/JPY always?

Quote from CN2000:

Ok guys, THANKS for all the math explanations.

The questions are:

does this happen all the time?
does the EUR/JPY have an independent quotation (sometimes) and therefore can a forex trader benefit from it?

To give an example, the USD/GBP * EUR/USD it's not equal to EUR/GBP.

Any comments?
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Forget doing this with a retail broker. Don't waste your time, 3 currency arbitrage is not available for standard traders.
 
Quote from Panurgo:

Forget doing this with a retail broker. Don't waste your time, 3 currency arbitrage is not available for standard traders.
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Yeah I think I agree with that. In my opinion a retail trader who succeeds at that game is using a bad broker (as in slow). In the long term the broker will go out of business.
 
Why not do this in cme Globex currency:

-Tighter spreads, better for reversing orders
-Everyone has nearly same spead of excution
-You can automate that for faster act

any comments?
 
I have observed tradable arbitrage moments in EUR/USD and USD/CHF.

You need to trade several lots to make it worth while usually.

Michael B.
 
Quote from Nana Trader:

Why not do this in cme Globex currency:

-Tighter spreads, better for reversing orders
-Everyone has nearly same spead of excution
-You can automate that for faster act

any comments?
More...

i agree.

although speed of execution may vary a little (im being pedantic - but you will need direct connestion, not dsl @ home)

this strategy will HAVE to be automated to get the required speed in.

ding this with a retail fx broker with 3 pip spread in looney land cos you will probably only get a pip/tick anyway (imo)
 
Quote from ElectricSavant:

You need to trade several lots to make it worth while usually.

Michael B.
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Why so Michael ? Is it due to the structure of the fees to trade FX Futures ?
 
I have no idea. I was trading another system at the time and noticed the opportuity several times each day.

Michael B.



Quote from jrkob:

Why so Michael ? Is it due to the structure of the fees to trade FX Futures ?
More...
 
Triangular arbitrage... you guys are definitely not the first at this game. Forget about it, definitely not worth it on the liquid pairs, may try on some more esoteric pairs. The opportunities only exist a fraction of seconds and with the spread they are almost non tradable.
 
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