#ArbitrageTradingStrategy ArbitrageTradingStrategy Arbitrage trading capitalizes on temporary price differences of the same asset across different markets. By simultaneously buying where an asset is cheaper and selling where it's dearer, traders lock in low-risk profits. Key types include spatial, triangular, and merger arbitrage. Success hinges on speed, low transaction costs, and sufficient capital, often leveraging high-frequency trading. While considered low-risk, execution, liquidity, and regulatory risks exist. As markets become more efficient, pure arbitrage opportunities are increasingly fleeting, demanding advanced technology to exploit.
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