does the relationship between currencies follow a total ordering .. otherwise it seems conceivable that one can take advantage of non-monotonicity to make money by simply converting from one currency into another .. and this can be done in an infinite cycle ..
there is one inhibitor though .. every forex transaction involves a surcharge which may possibly nullify any source of profit
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3 comments:
Arbitrage
Btw, since this is a negative feedback, it won't/shouldn't run an infinite time.
I think the way it works is rates are fixed with respect to the dollar, and it's a fixed number of decimal points, and countries work out mutual exchange rates based on that. But this is hearsay. :)
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