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i have 3 currencies AUD, USD and EU

I am trying to work out the mathematical formula to work out if there is a spread/arbitrage opportunity as well as the maximum amount that can be conducted ( for instance, if transferring from USD to EUR is limited by $100USD, then that is the limiting factor).

here is a wiki describing the transaction flow https://en.wikipedia.org/wiki/File:Triangular-arbitrage.svg

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closed as off-topic by vanguard2k, Bob Jansen, sashkello, olaker Feb 27 '14 at 0:22

This question appears to be off-topic. The users who voted to close gave this specific reason:

  • "Basic financial questions are off-topic as they are assumed to be common knowledge for those studying or working in the field of quantitative finance." – vanguard2k, Bob Jansen, sashkello, olaker
If this question can be reworded to fit the rules in the help center, please edit the question.

not sure why this is offtopic. triangular arbitrage formula/math is very hard to find on the web and is hard to wrap my head around. I wouldnt say it is basic. – Anton Feb 27 '14 at 23:41

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