Arbitraje triangular forex arbitrage

Not to be confused with Arbitration. The term arbitraje triangular forex arbitrage mainly applied to trading in financial instruments, such as bonds, stocks, derivatives, commodities and currencies.

Arbitrage” is a French word and denotes a decision by an arbitrator or arbitration tribunal. If the market prices do not allow for profitable arbitrage, the prices are said to constitute an arbitrage equilibrium, or arbitrage-free market. An arbitrage equilibrium is a precondition for a general economic equilibrium. This refers to the method of valuing a coupon-bearing financial instrument by discounting its future cash flows by multiple discount rates.