#ArbitrageTradingStrategy

Arbitrage is a trading strategy that capitalizes on temporary price discrepancies of the same asset across different markets. An arbitrageur simultaneously buys the asset in the market where it's cheaper and sells it in the market where it's more expensive, locking in a risk-free profit. These opportunities are fleeting, often lasting only seconds, and are rapidly exploited by high-speed trading algorithms. While individual profits per trade are usually small, the strategy aims for high volume to generate significant returns. This activity also contributes to market efficiency by pushing prices towards equilibrium.