#ArbitrageTradingStrategy Arbitrage trading is a low-risk, profit-driven strategy that exploits price differences of the same asset across different markets or exchanges.
How it works (Technically):
1. Identify price discrepancies between markets (e.g., BTC/USD on Exchange A vs. Exchange B).
2. Buy low on the cheaper exchange.
3. Sell high on the pricier exchange — instantly.
4. Lock in profits before the markets self-correct.
Requires:
High-speed execution
Real-time data feeds
Low-latency infrastructure
Automation via bots
Risks include:
Latency delays
Slippage
Transaction & withdrawal fees
Types:
Spatial arbitrage (across exchanges)
Triangular arbitrage (within forex or crypto pairs)
Statistical arbitrage (mean-reversion models)
Arbitrage = Opportunity + Speed + Precision.