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Lahore (I-Newswire) November 29, 2011 - Forex Arbitrage Explained is the latest new report that has been released by Jason Fielder who has been trading forex full time for the last 13 years. In the last two years, Jason has released FREE reports on Forex Scalping and Correlation Trading that have been downloaded by thousands of forex traders all over the world. His FREE Reports are always full of new ideas that cause a lot of ripples and brain storming in the forex community. Just some months back, his TradeForgeFX Report had caused a lot of stir amongst the pro traders.
First what is Arbitrage. Arbitrage is the mis-pricing between the same commodity in two different markets. For example, gold might be selling at $1,654 per ounce in Beijing but it might be selling at $1,650 in NY. So a savvy investor might buy gold in the NY market and sell it in Beijing China making a risk free profit of $4 per ounce.
However, whenever an arbitrage opportunity is spotted in the market, fat cats like the hedge funds and big banks immediately pounce on it and there develops a massive buying pressure in the market that is underselling the commodity and a massive selling pressure develops in the market that is overselling that commodity. So, the price differential drops to zero pretty soon and the arbitrage opportunity vanishes.
But there is a structural flaw in the forex market that makes it ideal for arbitrage trades. You see, the forex market is an over the counter unregulated market where the banks are free to make their own quotes. As there is no central regulation in the forex market, the brokers also make their own quotes.
If you have been trading forex for sometimes, you might be knowing this that different brokers quote different rates for the same currency pair. So, it might happen that one currency pair has a lower rate with one broker but a higher rate with another broker. This gives you an opportunity for forex arbs.
In forex arb trading, you buy the currency pair from the first broker and sell it to the second broker thus profiting from his greed. Now, keep this is mind that the daily turnover in the forex market is over $3 trillion, so you can well imagine there will be countless daily arbitrage opportunities in the forex market.
You must read this 14 page FREE Forex Arbitrage Explained Report by Jason Fielder where he explains the whole concept in simple and easy terms and reveals how he got inspiration from Warren Buffet for trying arb trading in the forex market. Not only that he also shows how to make the Forex Arb Trades practically. Each forex arb trade can make you a risk free 5-20 pips after you deduct the transaction costs. Make a few forex arb trades each day and you can easily make 30-50 pips daily. These trades come as close as possible to making forex trading risk free as you are just exploiting the currency pair exchange rate differential between two different brokers!
Why waste time on forex signals or a forex robot when you can make these risk free forex arb trades that allow you to lock in split second gains without you bothering in which direction the market is moving! In the next few days, Jason will be releasing the second and third part of his Forex Arb Report that will show you how to exactly make these forex arb trades using case studies!
About Forex Arb: Mr. Ahmad Hassam has done Masters from Harvard University. He is interested in day trading stocks and currencies!
Company Contact Information
Forex Arb
Ahmad Hassam 267/2-R, Phase II, DHA 54792 Phone : 923234462208
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