rloaiza
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Bullish
#ArbitrageTradingStrategy
The trading strategy of arbitrage involves taking advantage of price differences of the same asset in two or more different markets to obtain an immediate profit with low risk. This is achieved by buying the asset in the market where it is cheaper and simultaneously selling it in another where its price is higher.
Key features of arbitrage in trading:
Almost simultaneous buying and selling to minimize market risks.
Utilizes temporary price inefficiencies caused by factors such as supply and demand, time zones, or transaction costs.
Profits per transaction are usually small, so a lot of capital or high frequency is required for it to be profitable.
It is common in assets such as stocks, currencies, cryptocurrencies, and derivatives.
The trading strategy of arbitrage involves taking advantage of price differences of the same asset in two or more different markets to obtain an immediate profit with low risk. This is achieved by buying the asset in the market where it is cheaper and simultaneously selling it in another where its price is higher.
Key features of arbitrage in trading:
Almost simultaneous buying and selling to minimize market risks.
Utilizes temporary price inefficiencies caused by factors such as supply and demand, time zones, or transaction costs.
Profits per transaction are usually small, so a lot of capital or high frequency is required for it to be profitable.
It is common in assets such as stocks, currencies, cryptocurrencies, and derivatives.
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