๐ก #ArbitrageTradingStrategy Explained
๐ What is Arbitrage Trading?
Itโs 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.
๐ฐ Why Do Traders Use It?
โ Low risk (if executed quickly)
โ Quick profits without predicting market direction
โ Utilises price inefficiencies between exchanges
โ ๏ธ Key Points to Remember:
๐ธ Fees can eat profits โ always calculate net gain
๐ธ Requires speed and good technology setup
๐ธ Best suited for high-volume traders with access to multiple exchanges
๐ Example:
Buy BTC for $57,800 on Exchange A
Sell BTC for $58,050 on Exchange B
โก๏ธ Profit = $250 (minus fees)
โจ Is arbitrage part of your strategy, or are you focusing on trends and breakouts lately?