Triangular Arbitrage Process in FOREX Market in Different Countries: A Case Study of German DM and French FF
Author : Sachin Raval
Abstract :
The topic of investigation for this research paper is triangular arbitrage for brief and irregular periods of time. The purpose of using import and export trade activity in a triangle arbitrage strategy is to hedge risk and make a profit for arbitragers operating in international foreign exchange markets. This study utilizes a purely quantitative methodology and technique to analyze and contrast the spot exchange rates of three (triangular) currencies in two geographically distinct nations in Europe over the course of a predetermined amount of time. Arbitragers, importers, exporters, academics, and researchers who are interested in understanding the logics, route, and techniques of calculating triangular arbitrage would find this study beneficial. Based on the findings, it seemed that there is a good arbitrage opportunity between currencies and their respective locations, as described by the route diagram of triangular arbitrage.
Keywords :
FOREX, spot market, arbitrage, triangular arbitrage
