Triangular Arbitrage Meaning Explained Calculation Examples
What Is Triangular Arbitrage? The triangular arbitrage works on algorithms and advanced computer programs that can quickly determine these discrepancies and assist traders in registering profits. Such arbitrage of consecutive buying and selling of three currencies from one market to another and in large quantities allows traders to make low-risk profits through exchange rate discrepancies. Key Takeaways Triangular arbitrage is a method of trading in currencies or other assets to book profits by raising the difference in the stated exchange rate and cross exchange rate of two currencies....