Probably absolutely every trader who tried to work in the Forex market knows the principle: not risking high income not to get. Although, to be frank, there are some exceptions to this rule. One of these exceptions is arbitrage trading strategies , thanks to which you can get quite a significant profit with minimal risk. Well, let’s understand what the arbitrage trade is and how it can be used in the Forex market.
So, the essence of traditional arbitrage consists in making a profit due to the difference in prices for the same financial instruments, which are traded on different exchanges. If we talk about arbitrage trading, then its meaning is as follows: when on one exchange the price of the asset rises in relation to the price on another exchange, then they simultaneously sell the asset at the first and buy the asset for the second. At a time when the cost becomes the same, positions are closed and the trader obtains a guaranteed profit. Of course, the difference in prices should be greater than the costs in both markets.
In general, the attractiveness of arbitrage transactions is low risks and guaranteed profits, because the total position remains … Read More