I am a Forex trader. I trade with several brokers around the planet.
On rare occasions I see on specific pairs higher bids of one broker than asks of another broker, which would allow a nice arbitrage trade if traded instantly. (Opening a short? at one broker and a long at another broker of the same pair at the same time) When prices go back to "normal" this hedged position could be closed with a small profit.
I need a software which "compares" the bid and asks of a predefined pair of 2 (or more) different brokers and opens 2 positions (short at one broker,and long at the other broker simultaneously) if the bid and the ask of the different brokers are >= a predefined value.
The opening of the positions could be by sending the orders straight to the brokers or by the software "clicking" on predefined places on the desktop. (Where the Buy or sell buttons are placed by me)
New: (14.12.2008)
I was just checking, and some of my brokers do not offer API.
As an alternative for non-Api-brokers: is it possible to code a software that "recognizes" numbers on the desktop?
Example:
1. I have 2 platforms open, lets say EURUSD pair.
2. I predefine 2 spots on the desktop, where the actual broker prices of the pairs are blinking.
3. Spot 1 is the bid price of one broker, example 1.3010
4. Second spot is the ask price of the other broker, example 1.3012
5. If the? bid price of spot 2 is for example at least 3 pips higher than the? ask price of the other broker, the software activates Hotkey F3 on my keyboard. (I have an autoclick-software, which sends orders to brokers same instant by activating F3)?
6. The big question is: can a software "recognize" the broker price (does it know if is a 1.3010 or a 1.3020 on the Pc-screen if no API is involved) and compare it with the other broker`s price?