[petp_the_greek]

the spreads in FX are so TINY (1 or 2 pips on the majors, sometimes even 'choice' prices, ie; bid/ask is the same) that arbitrage like that is nonexistant. and the spreads in the nonmajors are so big and the liquidity so small that any arb situation that arises quickly dissapears. back in the good ole days, when there were no electronic dealing systems, those opportunities existed....but now theyve all dried up. there are (very few) arb opportunities between the futures and spot/forward markets, but those dissappear so quickly that its not even worth looking for them.