Triangle arbitrage helps keep the currency market in equilibrium.

Triangle Arbitrage

A riskless profit strategy that takes advantage of discrepancies in exchange rates in different markets by conducting a series of conversions among three currencies.

Currency Market

Also known as the foreign exchange market (Forex), it's a decentralized global market where currencies are traded, determining the foreign exchange rates for every currency.

Equilibrium

A state where market supply and demand balance each other, and as a result, prices become stable.