Fast Feed
Bid/Ask: 1.34560/1.34570
Slow broker 2
Bid/Ask:
1.34560/1.34570
Sell 1.34560
Slow Broker 1
Bid/Ask:
1.34560/1.34570
Buy 1.34570
Fast Feed
Bid/Ask: 1.34590/1.34600
Slow broker 2
Bid/Ask:
1.34575/1.34580
Close Sell 1.34560 at
price 1.34580STEP 2
STEP 3
Slow Broker 1
Bid/Ask:
1.34575/1.34580
Buy 1.34570
create virtual order: Buy 1.34580 and apply virtual trailing stop
Fast Feed
Bid/Ask: 1.34595/1.34605
Slow broker 2
Bid/Ask:
1.34595/1.34605
Slow Broker 1
Bid/Ask:
1.34595/1.34605
Buy 1.34570
Open sell at 1.34595
Profit = 1.34595 – 1.34580 = 15 points - commissions
STEP 1
STEP 4
Fast Feed
Bid/Ask: 1.34555/1.34565
Slow broker 2
Bid/Ask:
1.34575/1.34585
Slow Broker 1
Bid/Ask:
1.34575/1.34585
Sell 1.34595
Close Buy at 1.34575
create virtual order: Sell 1.34575 and apply virtual trailing stop
Fast Feed
Bid/Ask: 1.34560/1.34570
Slow broker 2
Bid/Ask:
1.34555/1.34565
Buy 1.34565
Slow Broker 1
Bid/Ask:
1.34555/1.34565
Sell 1.34595
STEP 5
Profit = 1.34575 – 1.34565 = 10 points - commissions
Locking Arbitrage Working Mechanism Explanation
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Locking arbitrage working mechanism

  • 1.
    Fast Feed Bid/Ask: 1.34560/1.34570 Slowbroker 2 Bid/Ask: 1.34560/1.34570 Sell 1.34560 Slow Broker 1 Bid/Ask: 1.34560/1.34570 Buy 1.34570 Fast Feed Bid/Ask: 1.34590/1.34600 Slow broker 2 Bid/Ask: 1.34575/1.34580 Close Sell 1.34560 at price 1.34580STEP 2 STEP 3 Slow Broker 1 Bid/Ask: 1.34575/1.34580 Buy 1.34570 create virtual order: Buy 1.34580 and apply virtual trailing stop Fast Feed Bid/Ask: 1.34595/1.34605 Slow broker 2 Bid/Ask: 1.34595/1.34605 Slow Broker 1 Bid/Ask: 1.34595/1.34605 Buy 1.34570 Open sell at 1.34595 Profit = 1.34595 – 1.34580 = 15 points - commissions STEP 1 STEP 4 Fast Feed Bid/Ask: 1.34555/1.34565 Slow broker 2 Bid/Ask: 1.34575/1.34585 Slow Broker 1 Bid/Ask: 1.34575/1.34585 Sell 1.34595 Close Buy at 1.34575 create virtual order: Sell 1.34575 and apply virtual trailing stop Fast Feed Bid/Ask: 1.34560/1.34570 Slow broker 2 Bid/Ask: 1.34555/1.34565 Buy 1.34565 Slow Broker 1 Bid/Ask: 1.34555/1.34565 Sell 1.34595 STEP 5 Profit = 1.34575 – 1.34565 = 10 points - commissions Locking Arbitrage Working Mechanism Explanation Click to read more about Locking Arbitrage