#ArbitrageTradingStrategy

**Arbitrage Trading Strategy**

Arbitrage exploits price differences of the same asset across markets to lock in risk-free profits. Common types include:

1. **Spatial Arbitrage** – Buying low in one market and selling high in another (e.g., cryptocurrencies on different exchanges).

2. **Statistical Arbitrage** – Using quantitative models to identify mispriced securities based on historical trends.

3. **Triangular Arbitrage** – Profiting from currency exchange rate discrepancies (e.g., in Forex).

**Challenges:**

- Requires ultra-fast execution (latency arbitrage).

- Minimal profit margins demand high volume.

- Market inefficiencies can disappear quickly.

Successful arbitrage relies on speed, low fees, and advanced algorithms.