CURRENCY CONVERSION AS A MEANS OF RECEIPT OF PROFITS

Abstract

This article describes the means to profit by converting the currency of one country in the currencies of other countries. In the process of conversion a proper understanding of direct and inverse quotations, as well as cross–rate is necessary. To characterize profits we apply the term “arbitration” that means buying in order to sell at a higher price. Income from currency conversion is obtained by as tripartite arbitrageurs in the currency markets, and ordinary depositors of banks, for whom banks and financial institutions offer specialized multi-currency deposits.