#ArbitrageTradingStrategy Arbitrage Trading Strategy Explained 🔄

📌 What is Arbitrage Trading?

It’s a strategy where traders exploit price differences of the same asset across different markets to earn a risk-free profit.

💡 How It Works:

Buy low ➡️ on Exchange A

Sell high ➡️ on Exchange B

➡️ Pocket the price difference.

📊 Example:

BTC is $59,500 on Binance and $59,650 on another exchange.

Buy 1 BTC on Binance ➡️ Transfer & Sell ➡️ $150 Profit (excluding fees)

⚙️ Types of Arbitrage:

Spatial Arbitrage: Between different exchanges.

Triangular Arbitrage: Uses price differences between 3 trading pairs on the same exchange.

Statistical Arbitrage: Algorithmic and model-based.

🛠️ Tools Needed:

Fast execution

Low latency

Arbitrage bots

Multi-exchange access

⚠️ Risks to Watch:

Slippage

Fees

Transfer delays

Market volatility

📈 Used by both pros & institutions, arbitrage is all about speed + accuracy.

$ARB