One-legged arbitrage on Forex: MegaTrader and SaxoTrader
When studying arbitrage opportunities on Forex market, we found out that most of them occur due to one broker’s quotes lagging to other’s. This happens because of many reasons: price feed aggregation from multiple liquidity providers, quote feed smoothing or filering, big latency etc. So, if you have two quote feeds, one real-time and one lagging, you can open orders on lagging feed in the direction of real-time, of course assuming the price gap covers spread + commissions. Thus, we will have a permanent statistical advantage, resulting in stable profit = robust winning strategy.