Finance

Triangular Arbitrage

Triangular Arbitrage

Triangular Arbitrage is the process of switching one currency to a new, converting it again with a third currency as well as, finally, converting it to the original currency within awhile span. This opportunity for riskless profit arises when the currency’s exchange rates don’t exactly match upwards. Triangular arbitrage opportunities don’t happen very often so when they do, they only last for a matter of just a few seconds. Traders that make the most of this type regarding arbitrage opportunity have advanced computer gear or programs to automate accomplishing this.