arb trading

Discussion in 'Forex' started by Econmajor, Jan 10, 2007.

  1. long eur/usd
    short gbp/usd
    short eur/gbp

    aren't you technically neutral here? I know most fx brokers don't allow you to offset positions this way, so after paying the spread or a commission, couldn't you use this to try to pick price movement descrepencies?
     
  2. were are the problem??!!

    the broker gonna take
    2 pips for the eurusd
    3 pips for the gbpusd
    3 pips for the eurgbp

    and u still gonna have the risk of the cross eurgbp
    and if u keep it for long term u well loose in the intersest rate

    where is the point?
     
  3. C99

    C99


    There is no risk of the cross eurgbp- it's a fully hedged position.

    That said, the mispricing will VERY rarely exceed the spread and/or transaction prices. Otherwise it would be free money.
     
  4. but u well loose the spread and every day u well pay interest