#ArbitrageTradingStrategy *#ArbitrageTradingStrategy* is a trading method where you profit from *price differences* of the same asset across *different markets or platforms*.
⚖️ Core Types:
1. *Spatial Arbitrage*
- Buy low on *Exchange A*, sell high on *Exchange B*
- Works best when price gaps exceed fees & transfer time
2. *Triangular Arbitrage*
- Trade between 3 pairs on a single exchange
- Example: BTC → ETH → USDT → BTC
- Profits from small inefficiencies in pricing
3. *Cross-Border Arbitrage*
- Take advantage of regional pricing gaps (e.g., Korean or Nigerian premium)
4. *DeFi Arbitrage*
- Use price differences between DEXs (e.g., Uniswap vs SushiSwap)
- Often executed with *flash loans* for no upfront capital
5. *Funding Rate Arbitrage*
- Earn by holding opposite positions in spot and futures markets when funding is favorable
🛠️ Tools:
- Bots (custom or platforms like Hummingbot, Coinarbitrage)
- Fast execution, low latency, and capital efficiency are critical
⚠️ Risks:
- Slippage
- Transfer delays
- Market moving before execution
- Fees canceling profits