#ArbitrageTradingStrategy is an approach where traders use the price difference of the same assets in different markets to make a profit. The goal is to take advantage of short-term market inefficiencies, such as changes in supply and demand, transaction costs, and exchange rates.
Examples of arbitrage:
Currency arbitrage — a trader buys currency at a lower rate and sells it where the price is higher.
Bond arbitrage — investors buy a bond on one market at a discount and sell it on another market at full price, taking advantage of the difference in interest rates.
Cryptocurrency arbitrage — traders buy bitcoin on one exchange at a lower price and sell it on another where it is valued higher.