#ArbitrageTradingStrategy Arbitrage Trading Strategy is a trading strategy that exploits price differences of an asset in two or more markets to gain risk-free profit.
Simple Example:
For instance, the price of Bitcoin on Binance = $30,000,
but on Coinbase = $30,100.
You can buy Bitcoin on Binance and then immediately sell it on Coinbase, making a profit of $100 per BTC (not including fees).
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Common Types of Arbitrage:
1. Spatial Arbitrage (Cross Exchange)
Buy an asset on one exchange, sell on another exchange.
2. Triangular Arbitrage
Exploiting the differences in exchange rates between three cryptocurrencies (e.g.: BTC/ETH → ETH/USDT → USDT/BTC).