Specification
Triangular" means that the portfolio consists of three instruments.
Let's take the most popular example: the "EUR — GBP — USD" triangle. In terms of currency pairs, it may be described as follows: EURUSD + GBPUSD + EURGBP. The reuiqred neutrality consists in an attempt to buy and sell the same instruments simultaneously while earning profit.
This looks as follows. Any pair from this example is represented through the other two:
EURUSD=GBPUSD*EURGBP,
or GBPUSD=EURUSD/EURGBP,
or EURGBP=EURUSD/GBPUSD.
Another example
GBPUSD = Buy
USDCHF = Buy
GBPCHF = Sell
or
GBPUSD = Sell
USDCHF = Sell
GBPCHF = Buy
USDCHF = Buy
GBPCHF = Sell
or
GBPUSD = Sell
USDCHF = Sell
GBPCHF = Buy
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