ArbitrageTradingStrategy

Arbitrage trading strategy exploits price differences of the same asset across different markets to generate risk-free profits. It involves buying low in one market and simultaneously selling high in another, ensuring instant profit capture. Key types include spatial arbitrage (across exchanges), triangular arbitrage (currency discrepancies), and statistical arbitrage (mean-reversion). Traders rely on high-speed execution, accurate data feeds, and low transaction costs to succeed. Risks include execution delays, slippage, and sudden market movements that can eliminate the spread. While profits are typically small per trade, frequent opportunities allow cumulative gains. Arbitrage remains a disciplined, data-driven strategy requiring constant monitoring and adjustment.