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How does triangular arbitrage work in the context of digital currencies?

Manoj SrivastavaApr 30, 2022 · 3 years ago1 answers

Can you explain how triangular arbitrage works in the context of digital currencies? What are the steps involved and how can it be profitable?

1 answers

  • Apr 30, 2022 · 3 years ago
    Triangular arbitrage is a popular strategy used by traders to profit from price differences between three different cryptocurrencies. It involves buying and selling these cryptocurrencies simultaneously to take advantage of the price discrepancies. However, it's important to note that triangular arbitrage opportunities may be limited and may require significant capital to execute effectively.