Let's first understand the cross exchange rate, which refers to the price of one non-US dollar currency representing another non-US dollar currency. Because US dollars are usually used to express the prices of other currencies in the world now, because the cross exchange rates in different markets are often different, and sometimes the cross exchange rate in the same market is not consistent with the theoretical cross exchange rate, which is why there is the possibility of triangular arbitrage. In this case, we can carry out triangular arbitrage: suppose you have $65,438+0,000, if you first convert the US dollars into HK$ 65,438+0,000 * 7.75 = 7,750, and then convert them into Japanese yen through the cross exchange rate of 7750 * 65,438+05.52, you will get 65,438+05.52. However, if you directly change US dollars into Japanese yen, you can only get1000 *120.43 =120430. This is called triangle arbitrage, and you can earn 150 yen. Repeat this operation for profit.

In fact, this operation is often adopted by multinational companies. Suppose an enterprise wants to invest100000 USD in Japan, this method can be used.