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Thread: Triangel

  1. #1
    Member
    Join Date
    Jan 2009
    Location
    Germany
    Posts
    227

    Default Triangel

    Hello funyoo,

    please look at this:

    Will place a BUY or SELL of the EURUSD AND EURGBP AND GBPUSD IN A TRIANGULAR LOT ARRANGEMENT TO REDUCE RISK AND GUARANTEE PROFIT.

    Triangular arbitrage (sometimes called triangle arbitrage) refers to taking advantage of a state of imbalance between three foreign exchange markets: a combination of matching deals are struck that exploit the imbalance, the profit being the difference between the market prices.

    The process of converting one currency to another, converting it again to a third currency and, finally, converting it back to the original currency within a short time span. This opportunity for riskless profit arises when the currency's exchange rates do not exactly match up. Triangular arbitrage opportunities do not happen very often and when they do, they only last for a matter of seconds. Traders that take advantage of this type of arbitrage opportunity usually have advanced computer equipment and/or programs to automate the process. As an example, suppose you have $1 million and you are provided with the following exchange rates: EUR/USD = 0.8631, EUR/GBP = 1.4600 and USD/GBP = 1.6939. With these exchange rates there is an arbitrage opportunity: Sell dollars for euros: $1 million x 0.8631 = 863,100 euros Sell euros for pounds: 863,100/1.4600 = 591,164.40 pounds Sell pounds for dollars: 591,164.40 x 1.6939 = $1,001,373 dollars $1,001,373 - $1,000,000 = $1,373 From these transactions, you would receive an arbitrage profit of $1,373 (assuming no transaction costs or taxes)

    The system like the picture in attachment.

    It's possible for you to create an EA, which is accepts from most brokers?

    Best regards
    j_l

  2. #2

    Default

    perhaps simultaniously open positions on the diff. pairs in a way so they hedge each other and a basket tp to basket positive differences.

  3. #3

    Default

    Quote Originally Posted by j_l View Post

    It's possible for you to create an EA, which is accepts from most brokers?

    Best regards
    j_l
    Ea here But they need some modification

Tags for this Thread

100, arbitrage, brokers, eur/usd, eurusd, exchange, funyoo, hedge, markets, profit, request, system, systems

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