#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.