If a Trader has 1,00,000 EURO to begin with and he sees below exchange rates in

Question the market then is there an opportunity to do a Triangular Arbitrage trade? If yes
then what will be his profit in EURO?
EUR/USD 1.0620
GBP/USD 1.2063
GBP/EUR 1.1400

Answer: EUR 100000 (All rates are Live rates taken at 10.30 p.m. on 6th Jan)

Sell EUR/USD 1.0620 106200 EUR converted to USD

Buy GBP/USD 1.2063 88038 USD converted to GBP

Sell GBP/EUR 1.1400 100363 GBP converted back to EUR

Profit = 363 EURO

ow exchange rates in
rbitrage trade? If yes

p.m. on 6th Jan)