Arbitrage trading strategy involves exploiting price differences of the same asset across different markets or exchanges. Traders simultaneously buy low in one market and sell high in another, capturing risk-free or low-risk profits. This strategy relies on speed, efficiency, and technology, often using bots to execute trades within milliseconds. Common types include spatial arbitrage, statistical arbitrage, and triangular arbitrage in crypto or forex markets. Although it seems low-risk, arbitrage faces challenges like latency, transaction fees, and regulatory barriers. Successful arbitrage demands precision, liquidity access, and constant market monitoring to stay ahead of price corrections.

#ArbitrageTradingStrategy