Arbitrage as it is. How and where? Implementation? - page 2

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Alexandr Bryzgalov:
it all depends on expectations, you didn't specify your expectations )
I don't get it ))
 
Alexander Laur:

The answer is NO WAY!!!

Have you heard about the transatlantic cable between New York and London? That answers your question. Do you want these uncles to let you into their pie?

Let me tell you about one kind of arbitrage within the same office, but ....... Execution of orders kills it for good. :(

So, you create a market-neutral portfolio of currencies (triangle):

buy EURUSD and USDJPY;

sell EURJPY.

The fact that you get a neutral portfolio is clear from the formula: EUR/USD * USD/JPY = EUR/JPY. According to the rules of arithmetic, the left side of USD is reduced and we obtain EUR/JPY, i.e. the left side is equal to the right one.

Now for the arbitrage itself.

1. Ask (of the portfolio) = Ask (EURUSD) * Ask (USDJPY) / Bid (EURJPY).

2. Bid (portfolio) = Bid (EURUSD) * Bid (USDJPY) / Ask (EURJPY).

Fluctuations of the price of this portfolio occur around 1.0, at that Ask fluctuates, as a rule, above 1.0, and Bid - below 1.0. But during the day there are short-term fluctuations when Ask drops below 1.0 and after a while Bid rises above 1.0 !!! Classic arbitrage, with separation by the time of entry and exit from the trade. That is, when the Ask price drops below 1.0 - we buy the portfolio, when the Bid rises above 1.0 - we close the portfolio. This is a risk-free trade, as the portfolio is neutral. That is to say, if one currency fires, the others will compensate for this fire.

I've heard about triangular arbitrage, but I haven't tried it. As long as all other niches are occupied - it may be a good solution at least ))
 
Daniil Stolnikov:
You mean cryptocurrency? Bitcoin?

Yeah, I can even show you how it works, in your accounts and for your money.

You'll be an MM.)

 
Daniil Stolnikov:
don't get it )))
what do you expect from arbitration?
 
Alexandr Bryzgalov:

Yes, I can even show you how it works, in your accounts and for your money.

You'll be an MM )

you're a sly one)) well, the bitcoin is busy too - they've been sucking the theme for a long time, even here on the forum
 
Alexandr Bryzgalov:
what do you expect from arbitrage?
You know what - instant risk-free profits like everyone else
 
Daniil Stolnikov:
You're a sly one)) Well, the bitcoin's all booked up too - they've been sucking on the topic for a long time, even here on the forum

you need to know the locations )

) You'd need dozens of quid to try 5 on one leg 5 on the other. )

 
Daniil Stolnikov:
you know what, instant risk-free profit like everyone else.

tomorrow it will come out of the sky

♪ blue blue blue blue whale ♪

♪ if you believe in it come out ♪

♪ and if you don't believe it, you stand and wait ♪

))

 
Daniil Stolnikov:
You know what, instant risk-free profit like everyone else.

Well, since everyone is like everyone else, the one with the most money wins here.

You have more than the Goldmans?

 
Alexandr Bryzgalov:

You got to know your spots.)

You'd have a dozen quid to try 5 on one leg, 5 on the other. )

tell me about it))
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