#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