#ArbitrageTradingStrategy

Arbitrage Trading Strategies involve exploiting price differences for the same asset across different markets or exchanges to earn risk-free profit. These strategies require speed, accuracy, and often automation.

šŸ”„ Common Arbitrage Strategies:

1. Spatial Arbitrage

Buy low on one exchange, sell high on another (e.g., BTC price difference between Binance and Coinbase).

2. Triangular Arbitrage

Involves three currencies on the same exchange; exploit price discrepancies in conversion paths (e.g., USD ā†’ BTC ā†’ ETH ā†’ USD).

3. Statistical Arbitrage

Uses algorithms and quantitative models to find short-term mispricings in correlated assets.

4. Cross-border Arbitrage

Takes advantage of price differences due to local demand, currency controls, or regulations in different countries.

5. DeFi Arbitrage

Uses decentralized finance platforms to exploit rate or price differences between DEXs (like Uniswap vs. SushiSwap).

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Risks:

High transaction fees

Slippage

Execution delays

Market volatility

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