Free Application Download: http://www.arbitrageportfolio.com/Triangular-Arbitrage-Calculator.xlsx Full Article: http://www.arbitrageportfolio.com/currencies-forex-arbitrage/ Currencies: Forex Arbitrage The most basic and purest forms of arbitrage, one that deals directly with money: the investment strategy of currency arbitrage. Triangular Arbitrage Known as three-point arbitrage, is the method in which we can create risk free profits from the difference between exchange rates. This strategy is based on the divergence of values between the currencies itself, not the markets. Triangular Arbitrage Cross Equation: CAD/JPY * GBP/CAD - GBP/JPY = 0 Take - CAD/JPY trading at $1 : ¥ 100 GBP/CAD trading at £1 : $2 and - GBP/JPY trading at £1 : ¥202   In plain English; sell CAD buy GBP, sell GBP buy JPY, then buy CAD and sell JPY. $1 / ¥100 * £1 / $2 - £1 / ¥ 202 = 0.000050