On Monday at buy ¥8718 Japanese Yen.
At sell ¥8728, give
¥4 to your friendly broker, leaving ¥6 profit. Your broker allows you to
leverage the transaction 58 times by lending you A$5,700.
Your net profit is therefore ¥348 Yen or 3.5%.
In the next fifteen minutes,
with equity of A$103.48, sell at ¥8730 and buy at
¥8712, grossing 18 pips (14 after deduction of brokerage spread). Your
equity is now A$111.88
Repeat this process every 15
minutes, selling high and buying low until close of business on Saturday
morning. Your average profit per transaction is 3.3%, yielding a final
balance of $A1,087,061,600.
the $100 loan.
If you feel
it is unfair to make so much money, reassure yourself, you are giving liquidity
to the market and helping others by promptly filling their trading orders.