#ArbitrageTradingStrategy Types of Arbitrage Opportunities on Binance
1. Spatial (Cross-Exchange) Arbitrage:
Buy crypto on Binance at a lower price and sell on another exchange (e.g., Coinbase, Kraken) where the price is higher.
Tools: Requires fast transfer time and low fees to be profitable.
2. Triangular Arbitrage (Intra-Exchange):
Exploit price differences between three trading pairs on Binance.
Example:
Start with USDT → Buy BTC
BTC → Buy ETH
ETH → Convert back to USDT
If final USDT > initial USDT, profit.
3. Statistical Arbitrage:
Uses quantitative models to exploit small price inefficiencies over time.
Often used with machine learning or algo-trading systems.
4. Funding Rate Arbitrage (For Futures):
Profit from differences in funding rates between perpetual futures and spot/futures markets