Triangle Forex Arbitrage Strategy

[Anne09]

Triangle Arbitrage is forex trading strategy, it is also called triangular arbitrage. It is total risk free. Triangle Arbitrage is different trading strategy, and as the name suggest it includes trading 3 different different currencies pairs almost simultaneously to profit from exchange rate difference between them.

The price of one currency pair depends on one or more other currency pairs , in this global forex market. The basic formula for the relationship of three related currency pairs, having 3 different currencies, is as follows.
XXX/YYY x ZZZ/XXX = ZZZ/YYY
If this equation goes wrong then arbitragers comes in trade. Only in that condition chance occurs for Triangle Arbitrage. A triangle arbitrage buys YYY against XXX means exchange of XXX , then buys ZZZ and spend YYY and at last returns XXX and exchanging ZZZ, and capture a small profit. For Arbitraging A a Large amount of margin is required and if you are using the broker’s margin , then you can make a good profit.

[Anne09]

Hello every one

really arbitraging is a good strategy. i earlier don't use it, but when i use this i found it's a great strategy to make money without risk, you can trade in forex without any risk by using this strategy.even i did never want to use this strategy, but my broker AVAfx suggested me this strategy and they helped me a lot,then i used this, and really now i found this is a good trading strategy but without a good profit percentage, it means it's a safe trading low risk strategy and you this, low risk, less profit.

[greencat]

Originally Posted by Anne09

Triangle Arbitrage is forex trading strategy, it is also called triangular arbitrage. It is total risk free. Triangle Arbitrage is different trading strategy, and as the name suggest it includes trading 3 different different currencies pairs almost simultaneously to profit from exchange rate difference between them.

The price of one currency pair depends on one or more other currency pairs , in this global forex market. The basic formula for the relationship of three related currency pairs, having 3 different currencies, is as follows.
XXX/YYY x ZZZ/XXX = ZZZ/YYY
If this equation goes wrong then arbitragers comes in trade. Only in that condition chance occurs for Triangle Arbitrage. A triangle arbitrage buys YYY against XXX means exchange of XXX , then buys ZZZ and spend YYY and at last returns XXX and exchanging ZZZ, and capture a small profit. For Arbitraging A a Large amount of margin is required and if you are using the broker’s margin , then you can make a good profit.

What Does Triangular Arbitrage Mean?
The process of converting one currency to another, converting it again to a third currency and, finally, converting it back to the original currency within a short time span. This opportunity for riskless profit arises when the currency's exchange rates do not exactly match up. Triangular arbitrage opportunities do not happen very often and when they do, they only last for a matter of seconds. Traders that take advantage of this type of arbitrage opportunity usually have advanced computer equipment and/or programs to automate the process.

Not really very pratical IMO..

[mickbali123]

Thanks for telling arbitrage strategy which really make the differs in profits of forex trading...

[smarttradepro10]

A safe strategy normally can only offer a limited profit. A higher risk could mean a higher potential to gain more profit.


D.R. Barton
Smart Trade Pro
Day Trading | Forex Trading | Investing

[Estelle Alivia]

The simultaneous purchase and sale of an asset in order to profit from a difference in the price.Generally, arbitrage seeks to take advantage of mispriced securities in the market. I did a little of this near the early years of my career before the advancements of technology, and changing to the decimal system from fractions made this extremely difficult to do.

[JamesFX73]

Thanks for explanation.Keep it up.

[KajolThappar]

seriously, the best traders make about 15% return a year,
while some people make the same return on a 3 hours tennis match betting on the favorite (federer)!!

besides, you pay no taxes on betting winnings and you really understand what you're putting your money into, and the crowd expectations have no effect on the outcome (contrarily to the stock market where a rumor can make you lose money)

My question: why many people still invest on stock markets? how much do they really make? and do their return outweigh the brokerage fees?


Seattle Airport town car

[Gilbert]

The strategy with 10pips per day while involved in scalping, i think is a good strategy. But you need to be extra careful to see the market ups and downs. The analysis showed here is a proof of the strategy and seems good enough to adopt.