Hello friends,
How to use Arbitrage Trading Strategy…?
Arbitrage is very hard to come by, and it depends on what type you are looking for. It is usually the preserve of institutional players with the resources to identify and realize those opportunities.
Hey Ricky Martin,
I would definitely advise you to stay away from trying to arbitrage unless you have more than $100,000 and a really good programmer and mathematician at hand and then you still need to carefully find the flows where you can arbitrage and even then it won’t last for very long because the brokers on the other side will eventually find the leak and fix it.
Not a long-term income source nowadays
Seb
Good programmer yes, especially one who knows how to develop efficient software. A good mathematician is not needed. The math is extremely simple. The brokers on the other side will find the leak and fix it – fascinating assertion. It seems their preferred course of action is to use plugins that delay order fills, or introduce excessive slippage “just for you,” or ban you altogether, keeping not just your profits but your initial deposit as well.
I am not sure if arbitrage is a good idea as most brokers don’t allow it because they see it as stealing. On the other hand, if you find a broker which allows it, you might have issues with their liquidity provider or providers as they will treat it as a market abuse and will warn the broker. Then, depending on the Terms and Conditions, the broker will find a reason to suspend your account. Honestly I find this strategy interesting but unfortunately not able to practice it on a long term.