arbitrage foreign exchange market and rate Currency arbitrage involves the exploitation of the differences in quotes rather than movements in the exchange rates of the currencies in the currency pair profiting from arbitrage is not only for market makers interest rate arbitrage strategy.
{"Image DocumentName": "Arbitrage and Spot Exchange Rates", "Image ImageDescription": "Arbitrage with Two Currencies. Example. Take advantage of differences in price of dollars quoted in New York and London: E\u00a3/ NY = \u00a30.50 per dollar. E\u00a3/ London = \u00a30.55 per dollar. A NY trader can make a riskless profit by selling  1 in London for 55p, using the proceeds to buy 55/50= 1.10 dollars in NY. An instant 10% riskless profit!", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}