Triangular arbitrage. How does it work?

Triangular or triple arbitrage is the result of a price difference between the three currencies when exchange rates do not match. Such discrepancies are a frequent occurrence in the cryptocurrency market. Using our software and powerful servers, we make arbitral transactions within 1 exchange almost in real-time.

Suppose we have 1000 USDT, we buy BTC for (the price is taken for example) 0.000115 BTC for 1 USDT .

We get 0.115 - BTC for 1000 USDT. We look at the price of BTC / ETH and ETH / USDT. We understand that the price of ETH / BTC is lower than ETH / USDT in converting to BTC.

We buy ETH at the price of 1 BTC = 45.460 ETH. We have 0.115 BTC, for them we get 5.2279 ETH and immediately sell ETH for USDT. Price for 1 ETH = 198.95, we sell all our ETHs and get 1039.045 USDT. The net profit on our order is 39.045 USDT .

This operation is carried out in a matter of seconds , it’s almost impossible for a person to do this manually. If the market goes the wrong way, you can lose in a few seconds, even if you take into account the commission of exchanges.

Tokenomics MMG offers you to use trading bots for such transactions. All the transactions are profitable because our bots are connected to exchanges via the program interface (API) using "direct monitoring" using web sockets. In online mode, our bot can detect such a price failure between 3 pairs and it takes 0.24-0.31 seconds to complete 3 transactions (this is with the expectation of order execution directly on the exchange). Our bots are connected to a large number of exchanges, so our transactions are fast and reliable.