#TradingStrategyMistakes Arbitrage is a trading strategy that seeks to profit from temporary price discrepancies of an identical or similar asset in two or more different markets. The core idea is to simultaneously buy the asset in the market where it's cheaper and sell it in the market where it's more expensive, locking in a risk-free profit.

How Arbitrage Works

Arbitrage opportunities arise due to market inefficiencies. While modern financial markets are highly efficient and these opportunities are often fleeting and small, they can still be exploited, especially by high-frequency trading firms