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by mdb333
2942 days ago
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Usually a currency arbitrage opportunity provides a fraction of a percent in gains, like .1% max. So, you need massive amount of capital to actually make a reasonable profit. You would think why risk huge amount of money for small profit, but because the markets are established the risk is nil. As traders act on the open opportunities markets become more efficient, eg the spread shrinks, and the opportunity quickly dissapears. A variable transaction cost works against you. |
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