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solmaris [256]
3 years ago
11

Due to ____, market forces should realign the cross exchange rate between two foreign currencies based on the spot exchange rate

s of the two currencies against the U.S. dollar.​
Business
1 answer:
aksik [14]3 years ago
6 0

Answer:

Triangular Arbitrage

Explanation:

Arbitrage is the financial practice in which the prices of two or more different markets are taken advantage of to make profit as a result of tthe imbalance in the prices of the markets.

Also known as 3 point or cross currency arbitrage, Triangular arbitrage is the taking advantage/ exploiting of the pricing differences between 3 currencies on the foreign exchange market.

Simply put, triangular arbitrage is a situation in which the exchange rates between 3 currencies are not the same.

Triangular arbitrage is difficult to come by as it requires very advanced computer systems to detect and take advantage of.

I hope this helps.

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What terms best refer to anything that can be bought or sold?
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The terms best refer to anything that can be bought or sold

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This is further explained below.

<h3>What terms best refer to anything that can be bought or sold?</h3>

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