#ArbitrageTradingStrategy

Arbitrage Trading Strategy involves exploiting price differences for the same asset across different markets or exchanges to secure risk-free profit. For example, if Bitcoin trades at $40,000 on Exchange A and $40,500 on Exchange B, a trader can buy on A and sell on B simultaneously, capturing the spread. Common types include spatial arbitrage (across exchanges), triangular arbitrage (currency pairs), and statistical arbitrage (mean reversion). High-frequency traders and bots often dominate this strategy because speed is critical. While theoretically low risk, arbitrage faces challenges like fees, transfer delays, slippage, and regulatory restrictions that can erode or eliminate potential gains.