๐Ÿ’ก #ArbitrageTradingStrategy Explained

๐Ÿ” What is Arbitrage Trading?

Itโ€™s a strategy where traders buy an asset from one market at a lower price and sell it in another market at a higher price instantly, locking in risk-free profits.

๐Ÿ’ฐ Why Do Traders Use It?

โœ… Low risk (if executed quickly)

โœ… Quick profits without predicting market direction

โœ… Utilises price inefficiencies between exchanges

โš ๏ธ Key Points to Remember:

๐Ÿ”ธ Fees can eat profits โ€“ always calculate net gain

๐Ÿ”ธ Requires speed and good technology setup

๐Ÿ”ธ Best suited for high-volume traders with access to multiple exchanges

๐Ÿ” Example:

Buy BTC for $57,800 on Exchange A

Sell BTC for $58,050 on Exchange B

โžก๏ธ Profit = $250 (minus fees)

$XRP $BIO $SOL

โœจ Is arbitrage part of your strategy, or are you focusing on trends and breakouts lately?