#ArbitrageTradingStrategy ArbitrageTradingStrategy đ°đđ
Arbitrage trading is a low-risk strategy where traders exploit price differences of the same asset on different markets or platforms.
đ Buy low in one market, sell high in anotherâinstantly locking in profit!
đ§ Key Types of Arbitrage:
Spatial Arbitrage: Buying from one exchange (e.g., Binance) and selling on another (e.g., Coinbase).
Triangular Arbitrage: Profiting from price differences between three currency pairs in the same exchange.
Statistical Arbitrage: Using algorithms and models to find short-term mispricings.
â Pros:
Low risk (if executed fast)
Works in volatile markets
Doesnât depend on market direction
â ď¸ Cons:
Needs high-speed trading and automation
Profits can be small without large capital
Fees and delays can kill gains