Triangular Arbitrage

A brief demonstration on Triangle Arbitrage between currencies

Category:

Education

Tags:

• finance
• international finance
• cross rate
• Triangle Arbitrage
• Arbitrage

[MrGeneralRosh]

could we find the cross rate using pounds instead od dollars like u used?

[csbhatnagar]

@MrGeneralRosh Yes, sure. In this example, you can compute the Y/$ cross rate as 204/1.81 = Y112..7071, which is different from the observed rate of Y118/$

[henry954]

Thanks for posting this video. Can you show how to calculate triangular arbitrage when there is a bid & ask quote? Ex. [ S(USD/EUR) 1.11-1.25 ]

[csbhatnagar]

I have done 3 videos for you, though not with the quotes you mentioned. The first one deals with an intro to bid-ask quotes. The second one is about finding the cross rate with bid - ask quotes and the third deals with Triangular arbitrage with bid-ask quotes.

Let me know if you find them useful. If any further clarification is needed, please feel free to communicate.

And thanks for watching. :)

[EissaMnM]

thanks

useful and easy explained video

you saved me

my exam is tomorrow

thanks a million times

[csbhatnagar]

All the best for your exam. I hope you will do well.

[MrLallaboy]

how to get in-depth knowledge on this method? any particular site?

[xxxxxxxxSARAxxxxxxxx]

thank you sooooo much

[oOHidekiOO]

Thank you so much! your video is simple and to the point. :) Keep it up!

[nilson4]

This was great, but there is always two different paths of conversion from beginning to end; one creates a profit and the other, a loss. Rather than using trial and error, how do we know which order to make the conversions to ensure a profit is made? Thanks

[AgdrAgon999]

I guess pentangular arbitrage is something I'll need to figure out. lol

[AgdrAgon999]

Thank you for this!

One question, though. Do you think it would be worthwhile to adopt a similar strategy in order to arbitrage precious metals (physical bullion) using the silver to gold, gold to platinum, and silver to platinum ratios? Or would I need to include other variables/ratios (adding Palladium and Rhodium, for instance) to make it more accurate or more feasible?

[analyzeee]

why the profit is different if we buy pounds from $ and then yens and convert it to $ again?.....

[rnagaich]

Big help, thank you. I wish I had found these videos earlier!