#ArbitrageTradingStrategy

Arbitrage is the practice of buying an asset at a lower price in one market and selling it at a higher price in another, instantly profiting from the difference — without exposure to market risk, if done correctly.

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🧠 How It Works

🔄 Basic Arbitrage Example:

BTC is $29,800 on Binance

BTC is $30,000 on Kraken

Buy on Binance → Send to Kraken → Sell at higher price → Profit: $200 (minus fees)

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📊 Types of Arbitrage Strategies

Type Description

Spatial Arbitrage Buy and sell between two exchanges (e.g., Binance vs Coinbase)

Triangular Arbitrage Exploit price differences between 3 trading pairs on the same exchange

Statistical Arbitrage Uses algorithmic models to identify mean-reversion opportunities

Decentralized Arbitrage Use DEXs like Uniswap, PancakeSwap where slippage and price gaps exist

Cross-Border Arbitrage In countries with price controls or restrictions (e.g., Korea, Nigeria)