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How Do Trading Bots Automate Triangular Arbitrage?

Bots scan prices of three pairs, and when a profitable loop is found, they execute all three trades instantly.
Greeks.Live23.11.25

How Do Trading Bots Automate Triangular Arbitrage?

Trading bots automate triangular arbitrage by constantly monitoring price data for three currency pairs on an exchange. When a bot detects a profitable price discrepancy, it automatically executes the three required trades in rapid succession.

This automation is crucial because these opportunities are often small and last for only a few seconds. The bot calculates potential profits after fees and executes faster than any human could, maximizing the chances of a successful trade.

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