broken cross rates; triangular arbitrage
(banking/foreign exchange) A forward foreign exchange arrangement which is not for a standard maturity period. Standard periods are: 1 week; 2 weeks; 1, 2, 3, 6 and 12 months.
(banking/foreign exchange) In foreign exchange, disparity among three or more rates. In an old example: if DM 1=30 cents and FF 1.5 while FF 1=22 cents, a Deutsche mark will bring 30 cents if converted directly but 33 cents if converted first into francs and then into dollars.