"Yes all trades start with an entry - buy or sell - but how do you exit to take profit?" The simplest option, which I have already stated, is to wait for the divergence between your two bucket shops to diminish (better yet disappear) as will happen unless they are coordinating their prices. What you're doing in this case is entering the arbitrage during a large divergence and exiting during a small (or nonexistent) one.
Is is a great idea and use to work qiuite well. Gft mini accounts alway would lag fxcm at announcements. So you would wait to see what way fxcm price went then just jump into gft same direction with almost promised profits. Took those clowns for 100s of thousands before they caught on. Me dam sure same opp still exists but can't reveal it till after it stops working
Makes no sense ........ Once the trade is entered you do not want to wait for anything. You want to exit immediately for a profit. Below is from your original post, which is quite a bit different from your answer above. Do you have any examples with buy/sell quotes from the brokers and trade entries and exits? --------
"Makes no sense ........ Once the trade is entered you do not want to wait for anything. You want to exit immediately for a profit." No, you don't. If waiting is what pays, then wait. The "risk-free profit" of the arbitrage is unrealized at first because you still have positions at the rigged bucket shops. Perhaps there is a risk of sorts involved until you're back in cash, but it's not the same market direction gamble taken by most traders. In fact, I wouldn't consider it a significant risk at all. Unless the rigged bucket shops are coordinating their quotes, it's only a matter of waiting from them to significantly agree. Your (unrealized) profit was made on the way into the bucket shop arbitrage. Then you waited until the divergence closed to exit.
Soda Jerkoff...the only profit being made in this "Arb" is the PIPS paid to enter and exit to not one, but TWO bucketshops. You are wasting your time and bandwidth.
That would the case if every account got the same quotes (i.e. a single market), but in the wonderful world of rigged bucket shop forex this is not what happens. Enter: arbitrage opportunity.
I played the latency game a few years ago, as did plenty of others on oanda and a few other bucket shops. They've started monitoring this type of activity with much more scrutiny and will bust your trades and close out your account.