When the theoretical cross rate differs from the actual cross rate quoted by dealers, a riskless arbitrage opportunity arises called:

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Triangular arbitrage involves exploiting the arbitrage opportunity resulting from a discrepancy between three foreign currencies in the foreign exchange market. When the actual cross rate between two currencies does not match the rate derived from their exchange rates with a third currency, traders can execute a series of trades to profit from the difference, risk-free.

When the Theoretical Cross Rate Differs from the Actual Cross