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Tests for [[seasonality]] in the amount and duration of triangular arbitrage opportunities have shown that incidence of arbitrage opportunities and mean duration is consistent from day to day. However, significant variations have been identified during different times of day. Transactions involving the JPY and CHF have demonstrated a smaller number of opportunities and long average duration during 10:00am and 1:00am [[UTC]], contrasted with a greater number of opportunities and short average duration during 1:00pm and 4:00pm UTC. Such variations in incidence and duration of arbitrage opportunities can be explained by variations in [[market liquidity]] during the trading day. For example, the foreign exchange market is found to be most liquid for Asia during 12:00am and 10:00am UTC, for Europe during 7:00am and 5:00pm UTC, and for America during 1:00pm and 11:00pm UTC. The overall foreign exchange market is most liquid during 8:00am and 4:00pm UTC, and the least liquid during 10:00pm and 1:00am UTC. The periods of highest liquidity correspond with the periods of greatest incidence of opportunities for triangular arbitrage. This correspondence is substantiated by the observation of narrower bid-ask spreads during periods of high liquidity, resulting in a greater potential for mispricings and therefore arbitrage opportunities. However, market forces are driven to correct for mispricings due to a high frequency of trades that will trade away fleeting arbitrage opportunities. <ref name="Fenn et al. 2009" />
Researchers have shown a decrease in the incidence of triangular arbitrage opportunities from 2003 to 2005 for the Japanese yen and Swiss franc and have attributed the decrease to broader adoption of [[electronic trading
==Profitability==
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