Triangular Arbitrage Calculator

What is triangular arbitrage?

Triangular arbitrage is a strategy that exploits price differences across three currency pairs that form a closed loop (e.g. EUR/USD, USD/GBP, GBP/EUR). You start in one currency, convert through the other two, and return to the first. If the product of the three exchange rates is greater than 1, a theoretical profit exists before transaction costs and spreads.

How to use this calculator

1. 1

   Choose three pairs that form a cycle

   For example EUR/USD, USD/GBP, GBP/EUR. The quote of pair 1 should be the base of pair 2, and so on, until the last quote equals the first base.

2. 2

   Enter rates or fetch live rates

   Type the exchange rate for each pair (units of quote currency per 1 unit of base), or click “Fetch live rates” to fill from our forex data (FMP).

3. 3

   Read the result

   Profit % = (Rate1 × Rate2 × Rate3) − 1, expressed as a percentage. A positive value indicates theoretical arbitrage; in practice, spreads and fees usually remove it.

Why use a triangular arbitrage calculator?

This calculator helps you quickly check whether a set of three forex rates implies an arbitrage opportunity. It is useful for education, back-of-the-envelope checks, and understanding how cross rates relate. Real execution requires accounting for spreads, commissions, and slippage.

Frequently asked questions