#ArbitrageTradingStrategy

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

๐Ÿ’ก How It Works:

Buy low โžก๏ธ on Exchange A

Sell high โžก๏ธ on Exchange B

โžก๏ธ Pocket the price difference.

๐Ÿ“Š Example:

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

Buy 1 BTC on Binance โžก๏ธ Transfer & Sell โžก๏ธ $150 Profit (excluding fees)

โš™๏ธ 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