#ArbitrageTradingStrategy

#ArbitrageTradingStrategy Explained:

Arbitrage trading is all about risk-free (or low-risk) profit by exploiting price differences of the same asset across different markets.

🔁 Types of Arbitrage I’ve Explored:

1. Spatial Arbitrage

Buy on Exchange A (lower price), sell on Exchange B (higher price). Classic example: BTC price differences between Binance and Coinbase.

2. Triangular Arbitrage

Within the same exchange — convert Currency A → B → C → A. Profit from inefficiencies in exchange rates.

3. Statistical Arbitrage

Use quantitative models to identify short-term pricing inefficiencies between correlated assets.

4. DeFi Arbitrage

In crypto, exploit price lags between decentralized exchanges (e.g., Uniswap vs. Curve) using bots or flash loans.

📉 Key Considerations:

Speed is everything: Opportunities vanish in seconds.

Fees matter: High fees can wipe out small profits.

Slippage risk: Especially in low-liquidity pairs.

Tech stack: Automation (bots + APIs) is a must for serious arbitrageurs.