Triangular arbitrage: does it exist for retail traders?

FTC Community TeamStaff98 views

Triangular arbitrage exploits mispricing across three pairs — the classic EUR/USD × GBP/USD × EUR/GBP triangle. In theory it's riskless; in practice the discrepancies are microseconds wide and the costs eat them.

Triangular arbitrage: does it exist for retail traders? — bid-ask spread diagram
The bid-ask spread on a currency pair

Have you tried?

  • what you found when you looked for mispricing
  • how spreads and latency ended the dream
  • the educational value of the attempt
Triangular arbitrage: does it exist for retail traders? — risk-reward diagram
A risk-reward ratio of 1 to 2

The cross rates guide explains the triangle maths.

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