#ArbitrageTradingStrategy The arbitrage strategy in trading consists of taking advantage of price differences of the same asset in different markets or platforms to obtain a theoretically risk-free profit. In the crypto world, this is frequently seen when, for example, Bitcoin has a slightly different price on Binance and Coinbase.
There are several forms of arbitrage:
Spatial arbitrage, between different exchanges.
Triangular arbitrage, between three pairs within the same exchange.
Temporal arbitrage, taking advantage of brief time discrepancies.
Although it sounds simple, this strategy requires high execution speed, low commissions, and often automated bots to be profitable. Additionally, it is necessary to have capital distributed across different platforms to act quickly.
In efficient markets, these opportunities last seconds. But in crypto, where volatility and liquidity fragmentation are common, arbitrage remains a powerful tool for advanced traders.