There are 6 references cited in this article, which can be found at the bottom of the page. Essentially the trader relies on a particular currency being priced differently in two different places at the same time. Trading forex arbitrage is not recommended as a sole trading strategy in forex. The foreign exchange market, commonly referred to as forex, is an international exchange for the trading of currencies.
Each trade is both a purchase and a sale, as one currency is sold in order to buy another one. Arbitrage is the practice of buying an asset in one market and immediately selling it at a slightly better price elsewhere. In theory, a given currency should carry the same price in different markets. Know how to use arbitrage to make profitable trades.