#ArbitrageTradingStrategy Arbitrage is a trading strategy that involves exploiting price differences of the same asset in different markets or exchanges. Arbitrage traders buy the asset in the market where it is cheaper and immediately sell it in another market where it is more expensive, generating profit from the price difference.
A key element is the quick identification and utilization of these price differences, which are often short-lived. Arbitrage requires fast access to market information and efficient execution of trades to minimize risk and maximize profits.
This strategy can generate profits without directional risk, but the profits from a single trade are usually small. Arbitrage is popular among financial institutions and high-capital traders who can leverage the scale of transactions to increase their profits.