#ArbitrageTradingStrategy

**Arbitrage trading strategy** involves using temporary price discrepancies of the same asset across different markets or exchanges. The goal is to make a profit by **buying the asset cheaper on one platform and selling it for a higher price on another, almost simultaneously**.

Key success factors:

* **Speed:** The ability to instantly react to price differences, as they disappear quickly.

* **Monitoring:** Constant oversight of quotes on many exchanges.

* **Liquidity:** The availability of sufficient liquidity on both sides of the trade to execute large orders without significant slippage.

* **Fees:** Profits from arbitrage must exceed all fees (trading, withdrawal).

* **Capital:** Requires capital allocation across multiple platforms.

Although arbitrage is considered low-risk in terms of price movement, it has its challenges, including high competition (often from bots) and risks associated with execution speed.

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