#ArbitrageTradingStrategy

Arbitrage trading strategy involves profiting from price differences of the same asset across different markets. Traders buy low in one exchange and sell high in another, capturing the spread as profit. This strategy is commonly used in cryptocurrency markets where price discrepancies can occur due to liquidity and volume differences. There are various types of arbitrage, such as spatial arbitrage (between exchanges), triangular arbitrage (within one exchange across trading pairs), and statistical arbitrage (based on quantitative models). While it offers low-risk opportunities, arbitrage requires fast execution, low transaction fees, and efficient capital allocation to be effective in dynamic markets.

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