Let's say today for example, silver is worth $26.06 USD and 19.04 EUR Now here is where it gets interesting 19.04 EUR converts to 26.0734 USD, so let's say for example on certain days, the conversion difference is $0.10 Either way, let's say I convert my money at the bank to EUR buy Silver and sell in USD. Now lets say I sell it just a nudge above my purchase price so on that day I convert my USD to EUR and my EUR to Silver and my Silver back to USD making hypothetically $0.08 each time. Wouldn't it be nice if you could really do that without the middle man and using a computer buy and resell and convert all in an instant over 1,000,000 a day. Making lets say $80,000 USD every day Just a fun little thought I had last night and I thought I'd share.
People with big money, fast computers and low commissions are constantly on the lookout for arbitrage opportunities like that. When they spot one, they trade it until they've moved the prices to the point that it's no longer profitable. Run the numbers with trading costs included.
Currency and metal traders have had a lot of success over the years. Many have gone bust. My thought is why not just swap currencies ? You make your profit from correctly hitting the exchange rates as the currencies move. Adding the PM's seems to complicate it a bit for me as it adds another commission into overhead. I have had the best success with the simplest trades. But will readily admit that there are some very complicated investment schemes that turn a profit. Good luck ! gary
I wouldn't recommend this. currency trading has hit a wall as far as making money. If you were in on it a few years ago when it was not that popular then you were able to make stable trades. the 4x market has becoming nothing more than a guessing game at this point and is highly unstable. the risk is huge. you can lose 100 bucks in 1 min with not problem if you are not careful. in 4x there isn't a commision so much as beating the spread. that is where the brokerage makes their money. most spreads start at 3 some at 4 meaning you have to move up 4 or 5 before you even start making a profit. most of the programs out there are rip offs and totally not worth it. it takes a lot of time and a lot of effort but in this day and age where everyone has a hand in it there is not a predictable market anymore.
