#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