#ArbitrageTradingStrategy refers to a trading approach where traders exploit price differences of the same asset across different markets or platforms to generate risk-free (or low-risk) profits. It's especially popular in crypto, forex, and commodities markets.

Types of Arbitrage Strategies

1. Spatial Arbitrage (Exchange Arbitrage)

Buy low on Exchange A, sell high on Exchange B.

Example: BTC is $110,500 on Binance and $110,800 on Coinbase → instant $300 profit per BTC.

2. Triangular Arbitrage

Involves three currency pairs on the same exchange.

Example: BTC → ETH → USDT → BTC — profiting from conversion inefficiencies.

3. Statistical Arbitrage

Uses quantitative models and historical data to predict price convergence.

Often involves machine learning or mean-reversion models.

4. Decentralized Finance (DeFi) Arbitrage

Exploit price inefficiencies across DEXes like Uniswap, SushiSwap, Curve.

Flash loans can amplify profits without upfront capital.

5. Funding Rate Arbitrage (Crypto)

Long spot BTC, short perpetual futures when funding is positive → collect the funding fee.

6. Cross-Border Arbitrage

Buy crypto in one country (e.g. where BTC trades at a discount), and sell in another (e.g. South Korea’s “Kimchi Premium”).