#ArbitrageTradingStrategy • Core idea: Exploit price differences of the same asset across different markets or exchanges.
• Common types:
• Spatial arbitrage: Buy on Exchange A at a lower price, sell on Exchange B at a higher price.
• Triangular arbitrage: Exploit discrepancies among three different currency pairs within the same exchange.
• Statistical arbitrage: Use quantitative models to find and trade temporary price inefficiencies.
• Requires fast execution and often automated trading bots to capitalize before the gap closes.
• Important factors:
• Consider transaction fees and withdrawal/deposit times.
• Watch for market liquidity and volume.
• Monitor regulatory restrictions on transfers between exchanges.
• Typically low-risk, low-return strategy but requires precision and speed.