⚖️ Arbitrage Trading: Earning on Price Differences! ⚖️
The essence of arbitrage trading is to profit from the price difference of one asset in different markets. We buy cheaper and immediately sell at a higher price.
How does it work?
We look for, for example, the price difference of Bitcoin between two exchanges. We instantly buy where it's cheaper and sell where it's more expensive, making a small profit.
Types of arbitrage:
Spatial: Different exchanges.
Temporal: (Rare).
On related assets.
Why is there a price difference?
Different liquidity, information delays, fees.
Challenges and risks:
Speed of execution is required.
Fees can eat into profits.
Counterparty risk.
Competition from bots.
Who is it suitable for?
Experienced traders with quick access to markets and low fees. Automation may be needed.
Arbitrage exploits market inefficiencies. Speed, attention to fees, and understanding of risks are necessary.
