#ArbitrageTradingStrategy Arbitrage Trading Strategy

Arbitrage trading is a strategy that exploits price differences of the same asset across different markets or exchanges. Traders buy low in one market and simultaneously sell high in another, locking in a risk-free profit.

There are several types of arbitrage strategies:

Spatial Arbitrage: Buying from one exchange (e.g., Binance) and selling on another (e.g., Coinbase).

Triangular Arbitrage: Exploiting price differences between three currency pairs in the same exchange.

Statistical Arbitrage: Using algorithms and historical data to predict price convergence.

Arbitrage opportunities are often short-lived, requiring fast execution and low transaction fees. It’s a low-risk but highly competitive strategy, often dominated by bots and institutions.