FX arbitrage profit????

Dealer quoted bid-offer price of 235.90 - 235.92 JPY/CAD

the implied rates by interbank are 235.8603 - 235.9422 JPY/CAD is there an arbitrage profit?

No. Dealer bid < interbank ask & dealer ask > interbank bid --> ask is greater than bid in any situation for this one…I’ve been reading a lot (long day), so I could be missing something, though.

Looks to be no arbitrage from my view, either.

You guys are correct!~

must the bid from the dealer or interbank always be lower?

for example:

Dealer: Bid - ask

235.80 - 235.90

Bank: Bid - ask

235.85 - 235.95

Yes, otherwise I could buy from the implied interbank or delear @ the ask, and sell the other @ the bid.


Bid Offer

100 101.5


Bid Offer

99.95 99.99

I could buy from the Interbank at 99.99 and then sell to the dealer for 100