#ArbitrageTradingStrategy

Arbitrage trading strategy exploits price differences of the same asset across different markets or exchanges. Traders buy low in one market and simultaneously sell high in another, profiting from the discrepancy. This low-risk strategy is common in crypto, forex, and stock markets. Types include spatial arbitrage (different exchanges), triangular arbitrage (between currency pairs), and statistical arbitrage (using quantitative models). Speed, technology, and minimal transaction costs are critical for success. Although profit margins are small, high-frequency execution can yield significant gains. Regulatory, liquidity, and timing risks must be managed effectively to maintain profitability.

#ArbitrageTradingStrategy