By using our site, you agree to our cookie arbitragem Forex. This article was co-authored by Michael R.
Lewis is a retired corporate executive, entrepreneur, and investment advisor in Texas. 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. Forex traders take advantage of minor price differences by buying currencies where they are less valuable and selling them where they are more valuable. This usually involves multiple trades of intermediate currencies in practice. Intermediate currencies are other currencies used to express the value of the currency you are trading.