Can you make money with FX arbitrage?

“What are the three great methods of arbitrage in the world?”

Can you answer in 10 seconds when asked?

Click-click...

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Yes, that's the end.

The three great methods of arbitrage in the worldare,

・selling options

・carry of the spread

・slippage in the spread

three of them.

So, have you traded each of them?

Yes, I have never done any of them (laughs).

None at all.

All are of interest, but I hadn't taken concrete action yet.

What kind of trades would you do,

how much profit could be expected,

how much loss should be anticipated

which brokers would be good

to use would be considered more deeply.

Well…

With the aim of increasing profits in FX, I decided to expand my investment targets

to include stocks (restarting) and other targets, and

to broaden the methodsI am planning.

In that flow, I have personally been curious about

carry trading

and will proceed with investigation/consideration.

＜What is a carry spread?＞

By the way, what is a carry spread?

A carry spread is

arbitrage

the minimum trade

is also said to be.

“The same price movement is expected,”and when theprice movement differs,

sell the higher

buy the lower

totake advantage of the price difference (movement difference) to revert the spread

and seek profit (the spread).

Personally, I often hear

using NT倍率 to trade the pair of “Nikkei Average” and “TOPIX”.

Even when using NT倍率, there is not a single uniform method;

there are several logics and trading techniques.

Of course, they are not completely different.

In fact, it's not that they are entirely different.

And there is also a thought to deploy carry trading in FX.

When two currency pairs have a strong correlation,

to profit from the price movement differenceis what it is about.

On the other hand,the idea that carry trading is not effective in FXalso exists.

This is because FX is traded in currency pairs, and if there is no overlap of four currencies appearing in two currency pairs,

if there is overlap and you combine currency pairs, you end up trading essentially one currency pair.

Of course, depending on the amount of currency traded, it does not always hold true,

but it is often stated as a way of thinking.

That said, since there are people who profit, there may be a way to accumulate profit with carry trading in FX as well.

In the above sense, perhaps you would select currency pairs that do not overlap, or

pairs of currency and commodities could also work, right?

(Although it might not be proper to call it FX carry trading, this point is irrelevant now)

So,FX carry trading that can accumulate profit with relatively low risk

FX carry trading

could be realized, and I will investigate/testing it.

If you are interested,

“Stable income with automated FX trading”

Please take a look.

Thank you for reading to the end.