Almost all brokers have protection against quotes and execution delays. These kind of solutions helps them to minimize risks, caused by trading on spikes and arbitrage. Several companies provide anti-arbitrage plug-in for protection against scalpers and arbitrage traders.

Usually anti-arbitrage plugins based on order life time and profit size determination. For example, if major of your trades was opened for very short period, your trading stile can be classified like arbitrage and anti-arbitrage will flag your account or change trading conditions for you in fully automated mode.

If your account was flagged it is almost impossible to unflag it and impossible to open new account with normal trading conditions.

This types of anti-arbitrage plugins can easily be deceived by professional arbitrage software.

It is more difficult to avoid intervention by new generation of anti-arbitrage plugins based o fast feed. This type of plugin mark trades which was opened during arbitrage situation. Plugin compare fast feed with broker’s feed and find arbitrage situation (it works like latency arbitrage software).

If percent of this kind of trades higher then adjusted, account will be flagged as well like in first case. 

It is only one way to avoid it – open trades before arbitrage situation or after it. This idea was applied for Locking Arbitrage. Software opens locks (opposite trades on 2 different accounts) before arbitrage situation on quiet market.  When arbitrage situation appear, we close order opposite to arbitrage direction. For example if buy arbitrage situation appear, we close sell order and reopen sell order when price on fast feed and slow broker the same. It means that we open orders only before or after arbitrage situation and this orders can be marked by anti-arbitrage plugin.

Video about Locking Arbitrage Software

We are enclosing several statements from our clients.

In each hedge pair one of two brokers uses anti-arbitrage plugin, but accounts were not flagged.