I am still a beginner, so please excuse any inaccuracies in my post.
I have been trying demo platforms for several ECNs offering low spreads, and have been looking to make paper profits on EUR/USD arbitrage mainly through simultaneous buying or selling of EUR and USD against PLN, SEK or NOK to profit from differences with the quoted EUR/USD during low-trading periods of the day.
However, I was faced with two problems in trying to make paper profits from these arbitrage opportunities:
1- Netting positions: For example if I sell EUR/NOK and buy USD/NOK with the amount of NOK that I was long in the previous transaction, I am practically short EUR/USD but can not close this synthetic position by going long EUR/USD and benefitting from the arbitrage opportunity that could have been available then.
2- Standard lots: Most ECNs I have encountered so far enable you to trade only in lots and don't enable trading of a specific non-standardized amount of the base currency (for example 126,550 EUR/USD.
It would be apppreciated to get your feedback and it would be interesting to hear from people who are into similar FX arbitrage strategies.
Excuse me once again for any poor clarity of how I am looking to trade or for any inaccuracies.
I have been trying demo platforms for several ECNs offering low spreads, and have been looking to make paper profits on EUR/USD arbitrage mainly through simultaneous buying or selling of EUR and USD against PLN, SEK or NOK to profit from differences with the quoted EUR/USD during low-trading periods of the day.
However, I was faced with two problems in trying to make paper profits from these arbitrage opportunities:
1- Netting positions: For example if I sell EUR/NOK and buy USD/NOK with the amount of NOK that I was long in the previous transaction, I am practically short EUR/USD but can not close this synthetic position by going long EUR/USD and benefitting from the arbitrage opportunity that could have been available then.
2- Standard lots: Most ECNs I have encountered so far enable you to trade only in lots and don't enable trading of a specific non-standardized amount of the base currency (for example 126,550 EUR/USD.
It would be apppreciated to get your feedback and it would be interesting to hear from people who are into similar FX arbitrage strategies.
Excuse me once again for any poor clarity of how I am looking to trade or for any inaccuracies.
