What's arbitrage please?

[AlexH]

Hi,

Very new to forex, but not so new I haven't already made a few mistakes (though thankfully not too expensive ones :-) so I found my way here and am learning from the ebook and video course, which seem to be great though I have not put theory into practice yet.

Seeing that NickB is using the GFT platform I decided to open a demo account and will likely open a live one, being TOTALLY disenchanted by the fxclub.com platform Rumus 2 which takes minutes YES minutes! to get a quote.

The GFT sales guy called me up and I asked about scalping, is it allowed etc. He replied that it depends what my definition of scalping is. He told me that making lots of trades is acceptable but that arbitrage is not. So not wishing to fall foul of the rules, can someone explain arbitrage please? And is it possible to do this inadvertantly?

And an addtional note, they will charge you $100 dollars per 3 month period that you do not trade. He told me that the only other costs I could incur would be on carry trade should I hold a position overnight etc... So sounds good so far.

Thanks,

Alex