Arbitrage Trading is a strategy where traders exploit price differences of the same asset on different exchanges. For example, let's take Solana (SOL):
On Binance, SOL is trading at $145.20
On Kraken, SOL is trading at $146.00
Here, a trader can buy 1 SOL on Binance for $145.20 and sell it on Kraken for $146.00, earning a $0.80 profit per coin, excluding fees. 🔄
This low-risk strategy works best with high liquidity and fast execution. It's ideal for stable or sideways markets. ⚖️📊