The proper use of Lock Latency Arbitrage makes it possible to earn a stable income in the FIX API Forex market, because it does not require a complex algorithm or an integrated approach to the asset flow analysis. All you need to know is the current state of the price and how to earn on it.

1. Locking arbitration
latencies: what is it?

2. What is Arbitration?
Arbitration is one of the types of high-frequency trading (HFT), the essence of which is to
analyze the exchange rate of the same currency pair in search for exchange rate differences.
The basic principle of this strategy is the simultaneous analysis of the asset,
but at different sites.

3. Types of Classical Arbitration.
- Triangular arbitrage;
- FIX API 2-Leg Arbitrage;
- FIX API Latency Arbitrage.

4. What is Lock Latency Arbitrage?
Latency arbitrage is arbitration of latencies and is represented by a classical method of
performing arbitration deals: determine the exchange difference between the two stock
sites and making the trade transaction
at a faster supplier of quotations.

5. Example.
The quotation of the EUR/GBP currency pair at the broker #1 (quick) is 0.8440;
The EUR/GBP currency pair at the broker #2 (slow) is 0.8445;
According to the latency arbitration strategy, the trading algorithm would "sell" the asset
at the second broker. But! According to the Lock Latency Arbitrage, the transactions are
opened at both brokers (like with 2-Leg Arbitrage, with the difference that you need to
know where the quotations demonstrate more relevant prices). Both transactions are set
with stop loss and trailing stop levels, on reaching which the transaction is closed and
gets opened at another broker.

6. Advantages of Lock Latency Arbitrage:
Work with spreads: this makes it possible not to be afraid of the big difference between
bid and ask prices, because this difference will play into the hands of the FIX API trader;
Risk control: based on the fact that the transactions will be in the lock, the risk
percentage will not increase and will always be static at a certain percentage;

7. Advantages of Lock Latency
Arbitrage:
The ability to open a large number of paired instruments: that is, when there is a deal
for +50 and -45 dollars, the funds make up +5 dollars to the initial deposit, allowing
you to open many new transactions, thereby increasing the financial result;
Positive values of trading strategy indicators, primarily mathematical expectation and
drawdown level.

8. Conclusion.
The proper use of Lock Latency Arbitrage makes it possible to earn a stable income in
the FIX API Forex market, because it does not require a complex algorithm or an
integrated approach to the asset flow analysis. All you need to know is the current state
of the price and how to earn on it.