The idea is to determine if there is a difference between the quoted cross-rate and the implied cross-rate. If so, we buy at the lower price and sell at the higher price and make arbitrage profit.
If there is no difference between the quoted cross-rate and the implied cross-rate, we would be buying and selling at the same price so there would not be an arbitrage profit.
You want to make sure that the implied cross rate contains the currency in which you want to trade, in this example it's the yen.
collegefinance 1 week ago
how to you know which banks to use for the cross rate
sonianoviango 2 weeks ago
Hi hi! Have you thought about the British Box Breakout (just google it)? Ive heard some great things about it and my cousin earned tons of money.
NafizHasan 2 months ago
Thank you so much for this, I have been trying so long to understand it and you illustrated it in a manner that was easy to follow and understand
07Killuminatiii 3 months ago
The idea is to determine if there is a difference between the quoted cross-rate and the implied cross-rate. If so, we buy at the lower price and sell at the higher price and make arbitrage profit.
If there is no difference between the quoted cross-rate and the implied cross-rate, we would be buying and selling at the same price so there would not be an arbitrage profit.
collegefinance 4 months ago
you lost me at 2 minutes
translatingsao 4 months ago