What Is the Main Technical Challenge in Executing Triangular Arbitrage?

The main technical challenge is the need for extremely fast, simultaneous execution of three separate orders. The price discrepancies are usually tiny and vanish within milliseconds.

The arbitrageur must have a low-latency connection and a highly optimized algorithm to detect the opportunity and submit the three orders faster than other market participants. Any delay can lead to the failure of one leg and a potential loss.