The Forex Arbitrage Calculator software helps identify risk-free arbitrage opportunities on forex cross rates.
The Forex Arbitrage Calculator is an excellent software tool that enables traders to determine risk-free arbitrage opportunities on forex cross rates. This software not only saves time but also provides accurate and reliable results.
Forex Arbitrage occurs between genuine rates and synthetic cross rates in different local markets. For example, if a trader has accounts with forex brokers in New York, Tokyo and London, local quotes can sometimes result in arbitrage opportunities.
In this case, the real rates are gbp/usd 1.6388 1.6393 (NY), eur/usd 1.1832 1.1837 (Tokyo), and the cross rate eur/gbp is 0.7231 0.7236 (London). By taking advantage of this scenario, a risk-free arbitrage opportunity exists with an estimated profit of $13.1 on a mini contract.
To achieve this, the trader buys 100,000 EUR for $118,370 (10 mini lots or one standard lot), sells 100,000 EUR for 72,310 GBP, and sells 72,310 GBP for $118,501, resulting in zero exposures in EUR and GBP and a profit of $131.
However, it is essential to note that such arbitrage is only possible if the trader's positions are netting (clearing) by some "clearing house." The Forex Arbitrage Calculator makes it easy for traders to identify and capitalize on such opportunities, leading to better and more profitable trading outcomes.
Forex Arbitrage occurs between genuine rates and synthetic cross rates in different local markets. For example, if a trader has accounts with forex brokers in New York, Tokyo and London, local quotes can sometimes result in arbitrage opportunities.
In this case, the real rates are gbp/usd 1.6388 1.6393 (NY), eur/usd 1.1832 1.1837 (Tokyo), and the cross rate eur/gbp is 0.7231 0.7236 (London). By taking advantage of this scenario, a risk-free arbitrage opportunity exists with an estimated profit of $13.1 on a mini contract.
To achieve this, the trader buys 100,000 EUR for $118,370 (10 mini lots or one standard lot), sells 100,000 EUR for 72,310 GBP, and sells 72,310 GBP for $118,501, resulting in zero exposures in EUR and GBP and a profit of $131.
However, it is essential to note that such arbitrage is only possible if the trader's positions are netting (clearing) by some "clearing house." The Forex Arbitrage Calculator makes it easy for traders to identify and capitalize on such opportunities, leading to better and more profitable trading outcomes.
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