Direct arbitrage is an illegal foreign exchange transaction, which refers to arbitrage by using exchange rate differences. When the exchange rate changes, currency conversion and profit can be realized through direct arbitrage, but this behavior can be easily identified and stopped by the regulatory authorities. In direct arbitrage, the application of multiplication and division is very important.

In direct arbitrage, the use of multiplication and division mainly depends on the changing trend of exchange rate and the operator's intention. When you want to buy a certain currency, if the exchange rate of the foreign currency rises, you can choose multiplication to get more foreign currency. On the contrary, when the exchange rate of foreign currency drops, you can use division to convert foreign currency back into local currency to get more profits.

However, direct arbitrage is a high-risk transaction. Historically, many enterprises and individuals suffered huge losses because of direct arbitrage. In order to avoid the risks brought by direct arbitrage, formal financial institutions and individual investors generally choose to conduct foreign exchange transactions through software tools such as futures, options and contracts for differences.

In the modern financial market, the supervision is more and more strict, and direct arbitrage is severely cracked down. Therefore, for investors who carry out arbitrage trading in the market, it is very important to operate in compliance and standardization. It is worth noting that for beginners, direct arbitrage is a high-risk investment method and should be carefully considered when trading.