Making The Market More Efficient By Looking For Inefficiencies And Exploiting Them For Profit. =TRIANGULAR ARBITRAGE TRADING
HISTORY OF FOREX
The Foreign Exchange market, also referred to as the "Forex" or "FX" market is the largest financial market in the world, with a daily average turnover of US$1.9 trillion -- 30 times larger than the combined volume of all U.S. equity markets.
"Foreign Exchange" is the simultaneous buying of one currency and selling of another. Currencies are traded in pairs, for example Euro/US Dollar (EUR/USD) or US Dollar/Japanese Yen (USD/JPY).
There are two reasons to buy and sell currencies. About 5% of daily turnover is from companies and governments that buy or sell products and services in a foreign country or must convert profits made in foreign currencies into their domestic currency. The other 95% is trading for profit, or speculation.
For speculators, the best trading opportunities are with the most commonly traded (and therefore most liquid) currencies, called "the Majors." Today, more than 85% of all daily transactions involve trading of the Majors, which include the US Dollar, Japanese Yen, Euro, British Pound, Swiss Franc, Canadian Dollar and Australian Dollar.
A true 24-hour market, Forex trading begins each day in Sydney, and moves around the globe as the business day begins in each financial center, first to Tokyo, London, and New York. Unlike any other financial market, investors can respond to currency fluctuations caused by economic, social and political events at the time they occur - day or night.
WHAT IS TRIANGULAR ARBITRAGE ? Financial Glossary Written by Wikipedia, the free encyclopedia. |
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).
WHAT YOU ARE BIDDING FOR?
I have developed a custom EXPERT ADVISOR called " TRIANGULAR ARBITRAGE " which works only on a Metatrader 4 platform.
Prefered broker is INTERBANKFX. You may use any MT4 broker since the EA has the option to select if its a MicroBorker or not.
This automated expert can simply be attached to any currency chart. It ONLY trades EURUSD, EURGBP & GBPUSD.
The beauty in this system is it really doesn't care what the trend is, nor do you. You don't have to look at charts, technical indicators or news annoucements.
TRIANGULAR ARBITRAGE is designed to 1. make profit daily. 2. LOW exposure of risk.
What is its main function? Will place a BUY or SELL of the EURUSD AND EURGBP AND GBPUSD IN A TRIANGULAR LOT ARRANGEMENT TO REDUCE RISK AND GUARANTEE PROFIT.
Thats the beauty of this system is it allows you to make the market more efficient by looking for inefficiencies and exploiting them for a profit.
EXAMPLE ON HOW IT WORKS
1. EA PLACES 2 INITAL HEDGE ORDERS.1 BUY & 1 SELL
2. WILL WAIT TILL FIND AN PROFITABLE ARBITRAGE SETUP ON EITHER SIDE FIRST
3. ONCE FOUND IT WILL PLACE THE A TOTAL ORDER OF 3 TO FORM THE ARB TRIANGLE TO CLOSE IN PROFIT
4. ADDITIONAL ORDER IS PLACED TO REPLACE THE MISSING INITAL HEDGE ORDER IN THE BEGINNING TO KEEP THE
2 TRADES HEDGED ONCE AGAIN.
5. EA WILL REPEAT THIS PROCESS FOR ANOTHER PROFITABLE ARB SETUP.
Software will be emailed within 24HRS once PAYPAL has been accepted.
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All Subscribers who participate in Forex Trading are required to read the Risk Disclosure, which we have placed on several pages of this site.There is no guarantee of profits from trading, and likewise no guarantee against trading losses. All subscribers participate solely at their own risk. We do however, guarantee that we will do everything possible to offer our subscribers the finest trade recommendations and customer service. Additionally 4XFX does not offer refunds.
