Triangular Arbitrage 101

Triangular arbitrage, also known as tri arb, exploits price inefficiency by trading in three currency pairs to produce a risk-free transaction in theory.  This article explores the basics of triangular arbitrage as they relate to retail forex traders, how to work out synthetic pairs for each currency pair, as well as some of the practicalities of applying the tri arb concept in the currency markets.

Triangular Arbitrage 101

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