Excerpt from: Forex Training
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| June 19, 2008 | | A sophisticated form of currency trading | One of the most sophisticated types of currency trading is the arbitrage trade. This type of forex trading requires computer models to be most effective. The Forex Blog describes how the arbitrage trade works:
Finally, there is the arbitrage trade, in which traders attempt to spot
minute differences in currency pairs that trade in different markets.
There is also the possibility of triangular arbitrage in which the respective exchange rates between 3 currency pairs aren't congruent
For the most part, beginning traders -- and even more advance individual retail traders, should avoid the arbitrage trade. It is a good strategy for institutional investors that make use of the difficult computer models.
| Topic Tags: arbitrage trade, beginning traders, computer models forex trading, currency trading, forex trading, forex training, FX trading | |
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