What Is Triangular Arbitrage in Cryptocurrency Trading?

Triangular arbitrage involves exploiting a price discrepancy among three different cryptocurrencies traded against each other on the same exchange. The trader executes a series of three trades: A to B, B to C, and finally C back to A. The goal is to end up with more of the starting currency than was initially held.

This requires simultaneous execution to lock in the profit before the rates adjust. It's a type of intra-exchange arbitrage.