#ArbitrageTradingStrateg

Arbitrage strategies seek risk-free profits by exploiting temporary price differences in identical or equivalent assets across different markets or forms. They require extreme speed, low costs, and advanced technology.

**Main types:**

1. **Triangular:** Takes advantage of discrepancies in currency pairs (e.g. EUR/USD, USD/JPY, EUR/JPY).

2. **Statistical:** Uses quantitative models to identify deviations from historical values (stock pairs, futures).

3. **Related assets:** Trades divergences between highly correlated assets (e.g. gold vs. mining stocks, ETFs vs. their components).

**Keys:**

- **Low returns:** Profits per trade are minimal; scaling is done with volume.

- **Competitiveness:** HFT algorithms dominate, reducing opportunities.

- **Hidden risks:** Imperfect execution, transaction costs, or sudden changes can lead to losses.

⚠️ Today, pure arbitrage is rare; most strategists combine statistical analysis with risk management.