#ArbitrageTradingStrategy

Arbitrage Trading Strategy (In Short):

A method to make risk-free profit by exploiting price differences of the same asset in different markets.

๐Ÿ” Example:

Buy Bitcoin for $30,000 on Exchange A.

Sell it for $30,200 on Exchange B.

Profit = $200 (excluding fees).

๐Ÿ’ก Types:

Spatial Arbitrage โ€“ Different exchanges/locations

Triangular Arbitrage โ€“ Currency mismatch

Statistical Arbitrage โ€“ Mathematical models

Crypto Arbitrage โ€“ Between crypto platforms

Merger Arbitrage โ€“ In M&A situations

โš ๏ธ Risks:

High fees

Fast-changing prices

Low liquidity

Regulatory issues

Goal: Profit from temporary price gaps before they disappear.