#ArbitrageTradingStrategy

Arbitrage trading is a strategy that exploits price differences of the same asset across different markets or exchanges. Traders buy the asset where it's cheaper and simultaneously sell it where it's more expensive, securing a risk-free profit. This strategy is common in cryptocurrencies, forex, and stock markets. Types of arbitrage include spatial arbitrage (between exchanges), triangular arbitrage (within currency pairs), and statistical arbitrage (based on historical patterns). Speed and technology are crucial, as price gaps close quickly. Although profits per trade are small, high volume and automation can make it highly profitable. Risks include slippage, fees, and execution delays.