[HELP] The Location of Forex Markets

[watermania]

I never traded in FOREX markets. What I am asking may or may not be able to be accomplished today. Also I don't know all the lingo so I apologize in advance if I'm not using the terms in the correct way.

Recently I talked to the father of a friend of mine. The only thing I knew was he was a wealthy retired software engineer but never knew what he specifically did. We struck up a long conversation and what he said made me very intrigued. I always hold out the possibility that he was just humoring himself and making everything up. Still I am curious.

He said before there were complex computerized Forex platforms what he did was create a program that could trade instantly based on both real-time data and the location of the markets with accounts around the world. He said he hasn't used any of the modern technology like MetaTrader or something similar. He said as someone out of the game he believed these platforms are great but are standardized and they just look at one location when trading which misses a lot of opportunities. Since I have never traded FX I am not sure if his observation is correct.

The example he gave me was how he would profit from USD/CAD. Say it is 3:48:23 Eastern time. You are in New York. The exchange rate will give you one spread in New York. Then if you were in Toronto at 3:48:23 Eastern the spread between the 2 currencies will be slightly different than it is in New York.

To expand this out, if you go to other locations at exactly 3:48:23 Eastern such as Australia, Japan, Great Britain, etc. His software would take advantage wherever the location had the greatest spread for USD/CAD and profit from it.

He took advantage of multiple currency combinations and spreads from all over the world.

My question is can this be accomplished using an existing platform, a robot combined with an existing platform, custom-built software, or this just can't be accomplished today?

[bruce]

Try Google for "Triangular Forex arbitrage". It may work with 3 related currency pairs instead of 2, for e.g. USD/CAD, EUR/CAD and EUR/USD.

I believe the market is fast moving and rather efficient even though there is no one central exchange for forex, so using robot or software is inevitable.

[EuroTrader]

Hey watermania!

I trade currency futures -- which are a lot like but still materially different than Forex. However, what you are describing is known as arbitrage. Since currency futures are all traded through the Chicago Mercantile Exchange (C.M.E.) everyone in the world gets the same quotes for the same currencies (assuming they use a reliable data provider). Forex is different in that it has no central data exchange. However, although Forex arbitrage may be possible, I can guarantee that greedy banksters have already thought of it and invested $Millions for the fastest computers in the best locationS to maximize any arbitrage opportunities.

Folks don't make money trying to beat the bankster computers at the game of speed!

Folks beat the banksters and their bankster computers IN the markets using our superior human mind properly trained and experienced.

Just a few thoughts . . .

[grert]

Not sure if it's the same thing but there is an EA that takes advantage of the different swap rates between brokers to make a sure profit regardless of market direction. I've no idea how good or bad it is. When I looked into it, I remember thinking it was not worth the hassle: https://forex21.com/swapmaster/

[The Jumper]

(05-23-2020 10:12 PM)watermania Wrote:  My question is can this be accomplished using an existing platform, a robot combined with an existing platform, custom-built software, or this just can't be accomplished today?

With advancements in technology today, NOTHING IS IMPOSSIBLE, ABSOLUTELY NOTHING!

[watermania]

Thanks. I appreciate everyone's input and gave Reps to everyone.

Now I have some clues as to what to investigate.