<p>You might be interested in <a href="https://www.investopedia.com/terms/t/triangulararbitrage.asp" rel="nofollow noreferrer">triangular arbitrage</a>. In efficient markets this should not be possible, I don’t think...</p>

CC BY-SA 4.0
2021-04-16T19:59:07.043Z
This is exactly what I'm looking for. Thanks!
JeGoB24
CC BY-SA 4.0
2021-04-17T12:53:09.253Z
Answers that are just links are generally discouraged, see https://meta.stackexchange.com/questions/8231/are-answers-that-just-contain-links-elsewhere-really-good-answers.
Ekadh Singh
CC BY-SA 4.0
2021-04-16T19:46:08.437Z
2021-04-16T19:46:08.437Z
RMM
<p><strong>Conjecture</strong>: The foreign price value of a currency is <a href="https://economics.stackexchange.com/questions/12318/is-there-a-good-way-of-assessing-an-estimated-absolute-value-of-a-currency" title="see forum">not absolute</a>.</p>
<p><strong>Scenario</strong>:
If the euro appreciates relative to the British pound and the price of the US dollar stays the same relative to the euro, what would happen to the US dollar?
Would the US dollar also appreciate relative to the British pound? Or, would it cost the same amount of dollars to buy one British pound?</p>
<p>I'm trying to determine whether it is possible to trade currencies several times and end up with more money than one starts with; That is, assuming that there are no transaction costs involved in trading currencies. If it is possible then, it would essentially be a loophole.</p>

<macroeconomics><open-economy-macro><foreign-exchange>
Is there a way to trade currencies several times and end up with more money than one starts with?
JeGoB24
# Is there a way to trade currencies several times and end up with more money than one starts with?

(Asked by: username_0 on 2021-04-16)

**Conjecture**: The foreign price value of a currency is [not absolute](https://economics.stackexchange.com/questions/12318/is-there-a-good-way-of-assessing-an-estimated-absolute-value-of-a-currency "see forum").

**Scenario**:
If the euro appreciates relative to the British pound and the price of the US dollar stays the same relative to the euro, what would happen to the US dollar?
Would the US dollar also appreciate relative to the British pound? Or, would it cost the same amount of dollars to buy one British pound?

I'm trying to determine whether it is possible to trade currencies several times and end up with more money than one starts with; That is, assuming that there are no transaction costs involved in trading currencies. If it is possible then, it would essentially be a loophole.

**Tags:** macroeconomics, open-economy-macro, foreign-exchange


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## 1 answers

### Answer by username_1 on 2021-04-16. Score: 0 | Accepted answer

You might be interested in [triangular arbitrage](https://www.investopedia.com/terms/t/triangulararbitrage.asp). In efficient markets this should not be possible, I don’t think...

> **Comments:**
> **username_0**: This is exactly what I'm looking for. Thanks!  
> **username_2**: Answers that are just links are generally discouraged, see https://meta.stackexchange.com/questions/8231/are-answers-that-just-contain-links-elsewhere-really-good-answers.  

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