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20 forex arbitrageTrade on the forex market with the help of programs (terminals) and computers has become for many an exciting activity, compared to which attempts to call brokers and give them orders during a panicking market seem simply a nightmare.

At the same time, electronic (online) trading has revealed to observant and active traders one pattern, which will be discussed in the material. Today, a large number of brokers (DCs or dealing centers) provide their services on the market, but each of them, although built on similar principles, has its own algorithms of work and translation of quotations to user terminals. Now we are not talking about attempts to deceive the DC, but about the technical features of online trading, which allowed to perform operations such as forex arbitrage.

If we open terminals of two or three brokers, we notice that the quotes of one may lag behind the others, but in general it is possible to repeat or almost repeat the price curve of the remaining brokers. This is what we need: when we see the price movement in a fast terminal and its lagging behind in a slower terminal, then in the latter we open the position in the direction of price movement. To open a position, the price difference in the terminal must exceed the spread / commission. It takes very little time to make a decision in this situation and it is almost impossible to make such operations by hand. To work on the system of forex arbitration, special programs have been created - trading robots that open and close transactions in accordance with the specified terms of trade, usually when prices are leveled in terminals. This system is not designed for the average retention of positions and refers more to scalping trade. Too long position hold (more than 10 minutes) in this case is not advisable, because the price difference in the terminals is most likely not caused by the beginning of large movements or other price hikes, but by technical hiccups or adjustment of equipment. The chances of catching a serious movement are extremely low, but getting a drawdown on your account, and then for a long time and, often, it is useless to wait until the account comes out of it, it is quite possible, therefore a deviation from the rules can negatively affect the balance.

Sometimes there are situations where the difference in terminals is impressive, but the transaction does not open due to requotes - this is the standard situation and it is also necessary to act in it standardly. In order to profit from such situations, it is necessary to open at a time when the difference has not yet reached the size of the spread, and the closing is effected in a situation of a reopening. Thus, the number of transactions will become noticeably larger, and the statistics and account will tell us about the profitability of the system.

This trading algorithm, in which only one position is opened, is called "one-legged", that is, the transaction occurs in one of a pair of terminals. Profitability of work is calculated by statistics, which must contain enough data for the conclusions (minimum of 30 transactions).