Arbitrage Forex Software Latency Hft Trading
As the trading value is higher than the implied value, we want to sell it. We will also need to place two trades in the two related major pairs, to create a synthetic EUR/GBP opposing position.
So let us suppose that a group of traders has decided to use the covered interest arbitration method with this pair. So they have opened a $100,000 short position with USD/RUB at 65, while at the same time purchasing an option, which gives them the right to close this trade at 65.50. This approach aims t […]