Source: wikibot/triangular-arbitrage
= Triangular arbitrage
{wiki=Triangular_arbitrage}
Triangular arbitrage is a trading strategy in the foreign exchange (Forex) market that exploits discrepancies in the exchange rates of three currencies to generate a profit without any risk. This process involves three steps and typically seeks to take advantage of inconsistent currency quotes. Here's how it works: 1. **Identify Mispricing**: Traders look for discrepancies in the exchange rates between three currencies.