#ArbitrageTradingStrategy

Arbitrage trading is a strategy that takes advantage of price differences for the same asset across different markets or exchanges. The goal is to buy the asset where it is cheaper and simultaneously sell it where it is more expensive, thus making a risk-free profit.

This strategy relies on the temporary inefficiencies of the markets. Arbitrage opportunities are often short-lived and require quick execution, often automated by algorithms. Although it is considered relatively low-risk, transaction costs, latency, and competition from other arbitrageurs can reduce margins or eliminate profits. It is common in currency, stock, and cryptocurrency markets.