How to start a Forex arbitrage trade

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Due to the development of information technology, cashback forex opportunities in the market are fleeting, any arbitrage space will be attracted to arbitrage for the purpose of trading, bestforexrebate thus compress the arbitrage space, so that the price of the usual If th What is forex rebate point of economic common sense are Whatisforexrebate, there is really no need to talk about arbitrage such topics But this statement completely ignores another dimension of extra-trade risk hedging arbitrage needs forexrebatenetwork-free traders is usually Small dealers, indeed, there is a greater problem of capital security which is also destined to the impossibility of large funds to such dealers, then the slow accumulation of small capital arbitrage transactions to the dealers can not hold up, arbitrage space is also not in the   arbitrage trading is the use of market imbalance profit and restore it to equilibrium, the rules of the dealers is an imbalance   first to answer can arbitrage, but not The subject wants this kind of exchange spread arbitrage, but position interest arbitrage arbitrage trading how to start? Concerned about the following points: 1. to have some change, I think five thousand, ten thousand is to have 2. want to arbitrage through foreign exchange 3. do not quite understand foreign exchange transactions and their costs from converting the yuan into dollars, and then into yen this can certainly say, given the cost of transactions, spreads change too quickly for retail investors is not possible but position interest arbitrage, for Retail investors are completely possible, but you need to find the right foreign exchange dealers we first say what is the position interest arbitrage   1, position interest   the so-called position interest is the sale and purchase of currency held over the settlement time, the resulting overnight interest, to I usually use the position interest arbitrage foreign exchange currency pair AUDUSD (AUD/USD), for example, in a dealer platform, buy 1 lot of AUDUSD Overnight position interest for +6.4 U.S. dollars, that is, traders pay you 6.4 U.S. dollars; sell 1 hand AUDUSD overnight position interest is -8.8 U.S. dollars, that is, you pay traders 8.8 U.S. dollars see an old foreign exchange dealer overnight interest  2, settlement T + 2  and then popularize a knowledge point, the settlement of overnight position interest is T + 2, that is, Monday The settlement of the warehouse interest on Wednesday, and the warehouse interest on Saturday and Sunday is also settled on Wednesday, that is, Wednesday will be a one-time settlement of three days of warehouse interest The following is a foreign exchange dealers warehouse interest settlement instructions:  I will tell you the following?  Arbitrage trading is a very important force in the foreign exchange market, it is said to occupy no less than 50% of the overall trading volume Unfortunately, most of us beginners do not pay attention to this kind of trading, that it is a small profit, not enough also do not know that the impact of this kind of trading on the price can not be underestimated, if the use of good, not only can arbitrage, as can arbitrage 3, Islamic accounts  Financial arbitrage usually use hedging means, that is, do more at the same time short, but think about you buy 1 hand AUDUSD overnight position interest for +6.4 U.S. dollars, is the trader to pay you 6.4 U.S. dollars; sell 1 hand AUDUSD overnight position interest is -8.8 U.S. dollars, that is, you pay the trader 8.8 U.S. dollars, and finally you do not instead have to pay the trader 2.4 U.S. dollars? ?  Now you need to know what is the Islamic account, Islamic countries due to religious reasons is not allowed to have interest this thing, so foreign exchange dealers for the great Islamic interest-free accounts known as Islamic accounts, the use of such accounts trading, regardless of buying and selling are no interest  Note: interest-free accounts are only some of the rules of traders, rather than the general rules of the foreign exchange market , like FOREX, Carlson, PCT these big-name traders are not interest-free accounts So, we just need to buy 1 hand AUDUSD in the general account to get overnight position interest 6.4 U.S. dollars, sell 1 hand AUDUSD in Islamic accounts without overnight position interest, we earned 6.4 U.S. dollars if it is Wednesday overnight, then we a hand to earn 19.2 U.S. dollars But the actual operation Not so simple usually provide Islamic accounts traders to open Islamic accounts need to provide proof of Islamic scrip, but … you understand there is no swap interest Islamic accounts, but there are different management fees, most of which can be bypassed without counting 4, standard contracts, spreads, leverage, margin rate, mandatory closing rate forex trading 1 hand of the standard contract Is 100,000 base currency, for example, AUDUSD, 1 hand is 100,000 AUD contract, yes now the front of the currency, here is AUD AUD is the base currency   If you want to hedge interest, you have to find the following conditions of traders   A. spread as low as possible the so-called spread is the difference between the bid price and the ask price, which is the cost of your transaction below AUDUSD kind, AUDUSD buy price 0.93933 - sell price 0.93918 = 0.00015, which is the use of five offers, that is, five decimal places after the dealer, we call its spread is 15 points also have four offers dealer, then you can say it spread is 1.5 points AUDUSD spread 15 is already considered very low, usually AUDUSD spreads will be to about 20 points and one to note, the spread is usually divided into fixed spreads and floating spreads, fixed spreads is the spread value fixed, floating spreads is the spread value in a region of change, it is recommended to choose a fixed spread of traders account  B. Leverage as high as possible the so-called leverage is the magnification of funds dealers will provide 100 to 1000 times the leverage ranging from 1 hand AUDUSD contract, if you do not use leverage, you need 100,000 Australian dollars (usually converted into U.S. dollars to show), if you use 100 times the leverage, you only need 1,000 Australian dollars to do margin; if you use 300 times the leverage, you only need 333 Australian dollars to do margin the following calculation we use the common 300 times the leverage Note : as long as you do not abuse the leverage, with a large proportion of leverage can open a position how much to open a position how much, then the size of the leverage and risk is not much related C. Forced closing rate as low as possible first of all, we need to know the margin rate that the following chart of the advance ratio Margin rate = net / used margin, such as the chart margin rate 199.6% = 1878.18/940.99 & nbsp;The so-called mandatory closeout rate that a margin rate below the minimum value, below this value, the position contract and because of insufficient margin and not traders forced to close the common mandatory closeout rate of 100%, 20% of these two files, of course, there are 80%, 30%, 0% and so on, depending on the trader depends on 2, 3 meet a, the best two meet, which relates to the profit rate; the following calculation we use Common 20% mandatory closing rate D. Convenient capital mobilization, this not only affects the profitability, but also affects the safety of funds E. Platform in and out of the exchange rate difference is low, this affects also the profitability 5, species selection, capital, profitability used to swap the currency pair should have the following advantages 1, the currency pair buy or sell have A trading direction platform will pay traders overnight interest;  2, currency pairs spread relative to its overnight interest is low;  3, currency pairs volatility relative to its overnight interest is low For example, the table above, AUDUSD buy 1 hand platform settlement after the platform to pay traders 6.4 U.S. dollars, and AUDUSD spread is 15, then 15 / 6.4 = 2.34, meaning that after 2.34 trading days can be recovered on one side of the cost of opening a position the following are several traders and currency pairs of revenue calculation table 

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