#ArbitrageTradingStrategy Arbitrage Trading Strategy is a trading strategy that exploits the price differences of an asset in two or more markets to gain profit without risk (risk-free profit).
Simple Example:
For example, the price of Bitcoin on Binance = $40,000,
but on Coinbase = $40,100.
You can buy Bitcoin on Binance, then immediately sell it on Coinbase, earning $100 per BTC (excluding fees).
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Common Types of Arbitrage:
1. Spatial Arbitrage (Cross Exchange)
Buy an asset on one exchange, sell on another exchange.
2. Triangular Arbitrage
Exploiting the differences in exchange rates between three cryptocurrencies (e.g., BTC/ETH → ETH/USDT → USDT/BTC).
You must know the fees incurred so as not to incur losses,
disclaimer on DYOR is not an invitation to buy anything, the decision remains in your hands.