Arbitrage Trading Strategy – Profit from Price Gaps!
Arbitrage trading is a low-risk strategy that takes advantage of price differences for the same asset across different exchanges or markets. For example, if Bitcoin is priced at $30,000 on one exchange and $30,200 on another, a trader can buy low and sell high simultaneously to lock in a profit. There are several types of arbitrage, including spatial arbitrage (across exchanges), triangular arbitrage (within one exchange across trading pairs), and statistical arbitrage (based on price models). Speed and automation are key, as these gaps close quickly. While profits per trade are small, they can add up with volume and precision.
