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About Arbitrage

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  • About Arbitrage

    Continuing on from here.

    FIX on the execution side is opposite of what people doing arbitrage wants, they donít want fast feed, they want slowfeed to execute their orders on. They do look at a fast feed and then find a broker to execute with slow feed Ö it is like looking in to future and then executing orders in the past.

    Global prime which is one this forum's VIP broker do allow arbitrage and so do many others.

    Now, for those who think they have just found the holy grail, let me tell you why it won't make money. In reality, this is the game of the original market makers at the very top.

    Goldman does it to Citi which does it to HSBC which does it to UBS which is doing it to Barclays.The original market makers play this game themselves. Thatís the reason prices remain in such a tight range as no one can really afford to be caught off-guard with a slow feed.

    Original discussion started from a broker which is a ECN but doesnot allows arbitrage. Where in theory should not be the case. Because broker will get commision to execute order if there a partyB which is happy to accept the order at a said price. Where reason for the trade is arbitrage, it should not matter to them unless they were making markets themselves. Infact, they should be happy to have arbs on their sheets, especially HFT arbs as it will fill their coffers with money.

    This thread has more information and official stance of Global Prime.

    From the horse's mouth:
    Attached Files
    Last edited by breaststroke; 04-12-2016, 11:27 PM.

  • #2
    Hi breaststroke
    Very interesting topic - I've tried arbitrage across several brokers myself but for know didn't manage to get positive results. I wonder: how do broker can identify that your position is a part of arbitrage trading?


    • #3
      Anyone? I'm really interested in the arb trading and other stuff like HFT.


      • #4
        I have a working arbitrage system. you can contact me on