#ArbitrageTradingStrategy Arbitrage trading involves exploiting price differences between two or more markets to generate profits. Here's a breakdown:
- *Price Discrepancies*: Arbitrageurs identify assets with price differences between markets, exchanges, or brokers.
- *Buying Low, Selling High*: They buy the asset at the lower price and simultaneously sell it at the higher price, pocketing the difference.
- *Risk-Free Profits*: Arbitrage trading aims to generate risk-free profits by exploiting market inefficiencies.
*Types of Arbitrage:*
- *Spatial Arbitrage*: Exploiting price differences between different geographic locations or exchanges.
- *Temporal Arbitrage*: Exploiting price differences over time, such as between spot and futures markets.
- *Statistical Arbitrage*: Using statistical models to identify mispricings in the market.
*Arbitrage Trading Strategies:*
- *Triangular Arbitrage*: Exploiting price