Locking arbitrage working mechanism
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The document provides information on bid/ask prices from various brokers and details multiple trading actions such as buying and selling at specific prices. It includes calculations of profits from trades and mentions the creation of virtual orders with trailing stops. Additionally, it alludes to a locking arbitrage mechanism, inviting further exploration.
Locking arbitrage working mechanism
- 1. Fast Feed Bid/Ask: 1.34560/1.34570 Slow broker 2 Bid/Ask: 1.34560/1.34570 Sell 1.34560 Slow Broker 1 Bid/Ask: 1.34560/1.34570 Buy 1.34570 Fast Feed Bid/Ask: 1.34590/1.34600 Slow broker 2 Bid/Ask: 1.34575/1.34580 Close Sell 1.34560 at price 1.34580STEP 2 STEP 3 Slow Broker 1 Bid/Ask: 1.34575/1.34580 Buy 1.34570 create virtual order: Buy 1.34580 and apply virtual trailing stop Fast Feed Bid/Ask: 1.34595/1.34605 Slow broker 2 Bid/Ask: 1.34595/1.34605 Slow Broker 1 Bid/Ask: 1.34595/1.34605 Buy 1.34570 Open sell at 1.34595 Profit = 1.34595 – 1.34580 = 15 points - commissions STEP 1 STEP 4 Fast Feed Bid/Ask: 1.34555/1.34565 Slow broker 2 Bid/Ask: 1.34575/1.34585 Slow Broker 1 Bid/Ask: 1.34575/1.34585 Sell 1.34595 Close Buy at 1.34575 create virtual order: Sell 1.34575 and apply virtual trailing stop Fast Feed Bid/Ask: 1.34560/1.34570 Slow broker 2 Bid/Ask: 1.34555/1.34565 Buy 1.34565 Slow Broker 1 Bid/Ask: 1.34555/1.34565 Sell 1.34595 STEP 5 Profit = 1.34575 – 1.34565 = 10 points - commissions Locking Arbitrage Working Mechanism Explanation Click to read more about Locking Arbitrage