#ArbitrageTradingStrategy
Arbitrage trading is a strategy that involves exploiting price differences of the same asset across different markets or exchanges. In crypto trading, this often means buying a coin at a lower price on one exchange and simultaneously selling it at a higher price on another, profiting from the price gap. This strategy requires fast execution, as price differences are usually small and last for a short time. Traders often use bots or automated systems to detect and execute arbitrage opportunities instantly. There are several types, including spatial arbitrage (between exchanges), triangular arbitrage (within one exchange), and statistical arbitrage. While generally low-risk, arbitrage trading requires high capital, quick transactions, and careful management of fees, slippage, and withdrawal delays.