#ArbitrageTradingStrategy

Arbitrage trading is a market-tested approach where traders exploit temporary price differences of the same (or closely related) asset across different markets. At its simplest, this means simultaneously buying low in one market and selling high in another—locking in virtually risk-free profit before prices converge. Common types include pure or cross-market arbitrage, merger arbitrage, convertible arbitrage, triangular arbitrage (especially in the currency markets), and statistical arbitrage—each designed to exploit specific inefficiencies.