The pitfalls of latency arbitration

Each trader is in constant search of various analysis tools that will allow him to quickly and without risks to take a profit in the financial market. Some traders trade on the news, while other determine the moments of the trend reversal, and others use automatic algorithms to make trading transactions. Each option deserves special attention, but I suggest you to consider one of the arbitrage trading types, namely the fix api Latency Arbitrage, which can be attributed to the high-frequency algorithms.

The logic of Latency Arbitrage is to open trading positions based on the exchange rate delays between the faster and slower broker. At a time when the quotes clearly lag behind the real market situation, the trading robot makes a speculative trading position and fixes several points of profit. Thus, making a huge number of similar trading operations, the fix api trader receives a guaranteed profit without any risks.

But despite the simple logic of these algorithms, there are also certain risks of Latency Arbitrage, of which not all people know:

·     This type of arbitrage is very easy to track, and given the fact that most brokers limit trading in this way, you can get under the conditions of profit refusal;

·     There is a possibility that the quotes will not reach the level of the faster broker due to the sharp reversal of the market;

·     Typically, the slow supply of quotations is made by brokerage companies that earn on customers, so there is a chance to get into the "kitchen".

https://forexrobotsreview.eu/2018/07/11/k-6/