Arbitrage Trading Strategy Explained
Arbitrage trading is a low-risk strategy that takes advantage of price differences for the same asset across different markets. For example, if BTC/USDT is priced lower on one exchange and higher on another, a trader can buy low and sell high—locking in a profit instantly. This method requires fast execution and sometimes the use of bots to identify and act on opportunities in real-time. Although profit per trade may be small, consistent gains can add up. It's perfect for traders looking to reduce exposure to market volatility while still earning returns. Just remember to factor in fees!