#ArbitrageTradingStrategy

Arbitrage trading is a strategy that exploits price differences of the same asset across different markets or exchanges. Traders buy the asset where it's cheaper and sell where it's more expensive, locking in a risk-free profit. This can occur in crypto, stocks, forex, or commodities. Common types include spatial arbitrage (between exchanges), triangular arbitrage (within one exchange using currency pairs), and statistical arbitrage (based on historical price relationships). Success depends on speed, technology, and low transaction costs. Although profits per trade are small, high volume and automation can make it lucrative. Arbitrage helps improve market efficiency by correcting price imbalances.